Shrinking the Economy to Save the World

America, I’m afraid to report, teeters on the precipice of inexorable decline. Our once limitless horizon is suddenly contracting, our outlook increasingly grim. Ross Douthat, The New York Times’ preeminent moral handwringer, lives in fear of the “stagnation, loneliness, alienation” our future has in store.

The cause for all this doomsaying? Not heat waves, wildfires, floods, or any of the other manifestations of the climate crisis. No, far more concerning for those in the halls of power is the 2020 census, which found that the US population is growing at a slower rate than at any time since the Great Depression. Fifty years ago, fears ran rampant that the “population bomb” announced by biologists Paul and Anne Ehrlich would produce a world without enough space to feed its untold billions of inhabitants. Now it’s a population “bust” we must prevent, what political scientist Darrell Bricker and journalist John Ibbitson describe as “a relentless, generation-after-generation culling of the human herd” in their 2019 manifesto Empty Planet. While the demographic slowdown that might produce this frightful culling is currently limited to the United States, Europe, and East Asia, Bricker and Ibbitson argue that even South Asia and sub-Saharan Africa—the regions whose growth most terrified the Ehrlichs in the ’70s—will see their populations peak by mid-century.

For many economists, the coming demographic apocalypse is a problem only insofar as it will damage the gross domestic product. Though the GDP does not speak in any meaningful way to people’s actual quality of life, it remains an obsession of policy-makers around the world, who accept the premise that a growing GDP is a sign of a healthy economy and that a rising population is a key component of that equation. In a March working paper, Charles Jones, a professor of economics at Stanford University, wrote, “When population growth is negative…living standards stagnate for a population that gradually vanishes.” Conversely, “an ever-increasing population benefits from ever-rising living standards.” As is typical in mainline economics, “living standards” here are defined by GDP per capita, the number you get when you divide a country’s gross domestic product by its population.

By this metric, life in America has never been better. GDP per capita is over $59,000, more than twice what the country enjoyed in 1980. But by most other measures—not the least of which is common sense—it has only gotten harder for Americans to prosper over the past half-century. The federal minimum wage has lost more than a third of its value since the late ’60s, while the rising cost of housing regularly outpaces both inflation and wage growth, as does the price of health care and college tuition.


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