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What happens to an economy when there's negative population growth? It shrinks unless you dramatically change the economics to permit shrinking while also not m
by cmurf 9y ago
What happens to an economy when there's negative population growth? It shrinks unless you dramatically change the economics to permit shrinking while also not making everyone poor or otherwise destabilizing society. Thus far our societies have been predicated on positive population growth, and if that can't happen by birth rates then it must happen with immigration.
About the closest approximation to a shrinking population society, is Japan. They have negative native growth and also don't bring in immigrants. And as a result they have widespread consolidation, aging, and ghost towns. And also the really unanswered questions about how to deal with an aging population with so few youth to care for the old, and where the money comes from to maintain standard of living. The main way they've done this is technological advances as an offset. OK, so is there a limit to such advances as compensatory elements of a shrinking society? Uncertain, but there probably is, and then what happens?
There's way more known what happens with societies that have strong population growth than what happens to shrinking ones that also survive. Typically the shrinking societies end up in the realm of anthropology and archaeology.