Why Shrinking Populations Are a Good Thing

It is quite common these days to read articles and op-eds expressing concern about the slowing fertility rates in the Western world as well as in East Asia. See for example

BOOM, BUST AND ECONOMIC HEADACHES (An overly alarmist article on the aging of the population in Canada):

http://www.theglobeandmail.com/globe-investor/retirement/the-boomer-shift-how-canadas-economy-is-headed-for-majorchange/article27159892/

However, most of the rhetoric is overblown (we are clearly not running out of workers anywhere – just observe the youth unemployment rates in Europe). Additionally, the global population is still expected to rise by at least 2 billion by the middle of the century.

Adair Turner’s critique of such concerns is a must read:

http://www.project-syndicate.org/commentary/adair-turner-makes-the-economic-case-for-demographic-stabilization

In fact, poor countries need to focus on reading population growth rates in order to attain sustainable economic development

http://www.project-syndicate.org/commentary/demographic-challenge-poor-countries-by-adair-turner-2015-08

Related:

http://www.economist.com/news/international/21603024-why-shrinking-populations-may-be-no-bad-thing-quality-time
http://science.time.com/2012/03/14/population-studies-birth-rates-are-declining-for-the-earth-and-a-lot-of-people-thats-not-a-bad-thing/