Quote:
Originally Posted by Acajack
Australia has a fertility raté of 1.7. Canada's is 1.6.
They are letting in fewer than 100 000 new permanent residents per year
We are letting in almost 5 times as many.
Is their math wrong or is ours?
If their math is wrong are they committing national suicide? Because people tell us that if Canada doesn't keep these high numbers this country is done for.
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This is kind of the crux.
A lot of a country’s economy is often just the internal support for other citizens of that economy. A lot of Australia’s wealth is resource wealth that is exported. That export wealth is produced by a relatively small proportion of its citizens. Resource wealth could continue despite declining population.
Managing other aspects - military strength notably - is harder in population decline. Or the large labour requirements of late era healthcare.
Japan’s rural areas are declining faster than its cities. The tough bit becomes how to manage infrastructure decline in those areas. Large Japanese companies - the engine of its economy - still export and repatriate their profits back home. They’re located in Japanese cities.
The hand wringing of requiring 1/2 million permanent residents comes back to the Excel tables of births and deaths. But that’s simplistic. The problem is less births minus deaths, but people leaving the workforce minus those entering the workforce. At this juncture, the large cohort leaving the workforce was born in the peak Baby Boom years. Even then, it’s not as if the Baby Boom was the be-all-and-end-all. They peaked at ~480,000 births/year in 1959, but there was still ~330-380k births per year in Canada in the past few decades.
The economic loss of a 90 year old resident’s death is small. The economic addition of a newborn is small too, at least initially. It is the potential of that newborn hitting their prime working years that pushes countries forward, or losing the experienced old hand to retirement that hurts. We’re hitting the retirement moment.
The proportion of citizens dedicated to value-add is declining in this country. It’s why employment by government has bloomed as compared to the private sector. It will likely grow as the demand for labour intensive government services rises. Is it possible to unwind this and still remain wealthy? Possibly. Will we blunder along and kick the can down the road until we can’t? Probably.