Demographic Headwinds: Fewer Babies, Longer Lives, and What it means for the Economy

Close to one in five Americans are over 65, double the ratio two decades ago. This is a consequence of both people living longer, and of declining fertility rates. Melissa Kearney joins EconoFact Chats to discuss the fall in fertility rates and to explain the challenges from these demographic shifts, including financial strains on Social Security and Medicare, shrinking local tax bases, and reduced business dynamism. She also highlights why immigration is only a partial fix, and why pro-natal policies like child tax credits are unlikely to meaningfully raise birth rates. Melissa is the Gilbert F. Schaefer Professor of Economics at the University of Notre Dame, where she recently launched the Strengthening Families Research Initiative. She is also the Director of the Aspen Economic Strategy Group.