Chuck Colson recently completed a 3 part series on what he called “demographic winter,” a supposedly devastating (and imminent) financial and economic crisis caused by declining population. In the article on “Demographics and Prosperity,” he writes:
[B]uying stocks is essentially betting on the future of the economy, and the best guide to that future is the actions of policymakers and financial markets. Correct?
Well, not necessarily. There is another—arguably more reliable—predictor of economic health: demographics…
In other words, future prosperity is determined, to a significant degree, by the number of children being born today.
In hindsight, this ought to be obvious: Consumer spending drives the economy. The more people you have in their peak spending years, the more spending you have on everything from housing, to travel, and taxes paid. As a population ages, it spends less.
The ultimate cause of this problem? An amazingly simple one.
But, as Spengler and others have pointed out, the root of the problem is “the decline of religious faith.” Loss of faith in the world to come leaves us grasping for everything we can get in this one, even at the expense of future generations.