The Accelerating Demographic Time Bomb

Fertility rates in developed countries have fallen below replacement levels, and in some cases, populations are now declining. Outside of pandemics and wars, the world has never observed a sustained decline in population. What does this mean for our economic future? Will economic growth stall without a growing labor force? Could advanced AI offset the effects of demographic shrinkage? We’ll explore these questions and consider potential scenarios, especially in the context of developed nations.

Dennis Sheehan, Ph.D., is professor emeritus of finance at the Penn State University Smeal College of Business. He previously taught in the business schools at Purdue University, the University of Chicago and the University of Rochester. He earned a bachelor’s degree in economics from Georgetown University and received his Ph.D. in economics from the University of California at Berkeley. Dennis is happily retired in his hometown of Newport.