Growing concerns about declining fertility rates and shrinking populations are increasingly capturing public attention. While economic factors undoubtedly play a role, some experts argue that the underlying cause lies in a broader crisis of confidence, driven by secularism—a worldview that rejects religious values.
Is capitalism contributing to this demographic trend?
In contemporary discourse, anti-capitalist sentiments are gaining traction. During the Cold War era, the ideological divide between capitalism and communism shaped global politics. Capitalism was once heralded by the “free West” as the key to a prosperous life, while communists criticized it, despite their own comfort within capitalist societies. Karl Marx, a key figure in this critique, denounced capitalism as inherently flawed. In the current globalist capitalist/socialist blend of the American economy, problems are expected to intensify, with leftists likely attributing the issues to capitalism.
Defining capitalism
According to the International Monetary Fund (IMF), capitalism is an economic system where private entities own and control property according to their interests, with demand and supply determining market prices. Ideally, this system should benefit society. However, the IMF’s portrayal may be outdated. Today’s capitalism often involves private entities—sometimes heavily subsidized public companies—outsourcing jobs and encouraging low-wage immigration. While this benefits shareholders and corporate executives, it imposes costs on taxpayers and harms societal welfare.
The real question is how capitalism affects fertility and family life. Recent analysis by Irish macroeconomist Philip Pilkington in the American Affairs Journal highlights a significant issue: capitalism’s inherent drive for profit and consumption conflicts with its structural needs. Pilkington argues that capitalism, left unchecked, discourages family formation, which in turn undermines its own long-term economic growth. This contradiction, he suggests, is more profound than Marx’s critiques.
The negative feedback loop
Capitalism’s focus on profit often means that families struggle to support larger numbers of children, resulting in fewer future workers. This scenario leads to higher labor costs and inflation, exacerbating an aging population where the number of dependents surpasses the working-age population. The resulting economic pressures may lead to intergenerational conflicts, with younger generations facing stagnant wages and rising costs, while older individuals hold significant asset wealth.
Such demographic shifts can erode social cohesion, potentially leading to conflict between generations. In societies where economic disparities widen, social bonds may weaken, fueling tensions between younger and older generations. Despite initial improvements in poverty reduction and family size under capitalism, this trend appears unsustainable in the long run. As countries reach higher per capita incomes, typically around $36,000, their demographic stability is increasingly at risk unless they maintain a large, fertile, and traditionally religious population.
This complex interplay between capitalism and demographic trends reveals that while capitalism may offer temporary gains, its long-term effects on fertility and population stability present significant challenges.
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