The critics say you can't run government like a business. I respond, well we can't run government like a government anymore ------ Ralph Klein (Canadian Progressive Conservative Politician, 1994)
As life expectancy rises and populations age, we will need to rethink retirement and empower people to live longer, healthier lives in financial security. By 2050, the number of people aged over 60 is expected to more than double to 2.1 billion, which will have implications for the workforce and financial and care systems globally.
If you look at fertility, there are a few social trends that are the proximate causes of its decline. That includes norms around longer schooling, more parental attention paid to kids, less grandparent involvement in parenting, low religiosity, higher vanity, and moving from “cornerstone” in the past to today’s “capstone” late marriages.
Fertility and productivity are interconnected in several ways, particularly as they relate to demographic trends, workforce availability, and economic outcomes. While it may not seem like an obvious connection, changes in fertility rates can have a significant impact on businesses, labor markets, and overall economic productivity.
Some countries with declining fertility rates, like Japan or Italy, have turned to immigration as a way to boost the workforce. Immigrants, especially those of working age, help to replenish the labor pool, ensuring that businesses continue to have access to a sufficient and diverse talent pool. Immigration can help mitigate some of the adverse effects of declining fertility by increasing the working-age population and sustaining overall business productivity.
Declining Fertility Rates: In many developed countries, fertility rates are declining. When fertility rates fall below the replacement level (around 2.1 children per woman), the population ages, and the proportion of working-age people decreases. This leads to a shrinking labor force, which can result in labor shortages in various industries. As fewer young people enter the workforce, businesses may face difficulties in hiring and retaining talent. With fewer workers available, businesses may need to increase wages to attract employees, but this can raise operational costs and decrease profitability.
Aging Population: As fertility rates drop, the population tends to age, meaning there are more elderly individuals relying on pensions and healthcare systems, and fewer younger people to support them. This shift can create a growing burden on businesses to fund pensions, healthcare benefits, and other welfare systems. Moreover, an aging workforce may face challenges in maintaining high levels of productivity, as older workers may experience health issues or may be less adaptable to new technologies and methods.
Younger Population and Innovation: Younger workers tend to be more innovative, technologically savvy, and flexible in adapting to new business environments. In countries with lower fertility rates, businesses may have fewer younger individuals entering the workforce, which could slow down innovation and the adoption of new technologies. This could have a longer-term impact on overall productivity as industries face difficulties in staying competitive.
The economy of the Born is powered by human attention, human desires, human biases, human labor, human attitudes, human consumption. The economy of the unborn, a synthetic economy, is powered by artificial minds, machine attention, synthetic labor, virtual needs and manufactured desires. [...] We are not replacing existing humans with bots, nor are we replacing unborn humans with bots. Rather we are replacing never-to-be-born humans with bots, and the relationship that we have with those synthetic agents.
The economy of the unborn will be powered by bots.
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