The Great People Shortage is coming – it's going to cause global economic chaos
businessinsider.com
businessinsider.com
Time for the robots to show up to work and clock in. In the mean time, in developed countries the balance of power in wage negotiations has shifted in favor of workers, for the first time since the 1970s.
The (Great People) shortage is coming
Nice theory, but causality clearly goes in the opposite direction.
The traditional theory is that when one person can be more productive via education and technology, they stop relying on offspring as a labor source, because they can increase productivity more via mental labor and toool building then via uterine labor.
It's a bit cyclical, since not caring for babies frees up time for more mental labor to improve productivity to reduce the need for child labor.
But, back to my point, which is that this economic specialization is not at all causal to living standards, which could be absolutely awful and yet provide no incentive for childbearing. This tribal structure has a common name: ‘extinct’. Conversely, an unspecialized tribe could enjoy wonderful living standards, and they would be expected to grow prodigiously. And finally, if a previously unspecialized tribe becomes specialized, and therefore lowers their birth rate with the same economic output, their living standard will increase. Okay one more to drive the point home. Consider the Mongols or Wahhabists. These were low-fertility specialized tribes that enjoyed massive increases in living standard, followed by such a massive increase in fertility that it would eclipse the population growth of all other tribes.
Market participation is the force that both drives specialization away from ‘uterine labor’. Additionally, it reduces the value of all outputs such that there is not enough prosperity margin to produce children. Imagine a high-fertility tribe that can no longer afford to feed and house children because the market price naturally drops for their goods over time. In this case, the causality clearly works in the opposite direction.
So I will state the obvious, that improved living standards do not cause low fertility, but market participation does, and the result of this combination is increased living standards.