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The biggest issue is probably not being able to play pensions or have people care for the older generation.
Correct. When we hear concerns about a declining population, the concern (typically) isn’t that a population should always be rising, or even that it shouldn’t shrink, it’s more about the long-term economic stability of the age distribution of a population within the demographic pyramid. If your demography skews significantly older, you’re going to have fewer working age people supporting your economy and more post-retirement age people needing to be supported. This can do double damage to government revenue in particular, as they will see a simultaneous decrease in tax income and an increase in pension payouts, and this can lead to a sharp contraction in the available share of the budget for all of the other government priorities.
It’s a bit ironic in this case, as this is pretty common in developed economies, and typically the way you would offset this is via immigration, as that allows you to tailor your requirements to exactly what you need to balance your demography, and so anti-immigration sentiment is only likely to cause a more severe spiral.
...and that means retirees will literally starve and live on the streets? I don't think it will. It will just be less luxurious.
So wages in care work are rising?
Who exactly will work those jobs?
Anyone. That's how the labor market works. There aren't going to be zero people capable of doing the work, they're just going to be rare.
The same amount of work needs to be done to keep the economy running as it is, so you're stretching those people out over a lot of additional jobs. How many jobs do you expect a young person to take simultaneously before they decide "this sucks, I'm emigrating to Canada where you only have to work one lifetime before getting to retire"?
Yeah, or, hear me out on this crazy theory: the supply of labor is low, so wages rise and young people can finally earn more money on just one job?
And then all those bullshit jobs that are not actually producing value get cut?
It wouldn't be the same amount of jobs.
There is a limit to how much work you can get out of a fixed group of people no matter how much money you throw at them. If you ask me to build a thousand houses in an hour I'll say "I can't do that" and it won't matter if you offer me a billion dollars to do it, I can't do it.
The reason the population crisis in Japan is called a population crisis is because it is threatening to go past that threshold. It wouldn't be a crisis otherwise.
Right, and I'm doubting that that is the case, because nobody who claims these things actually shares data and evidence to support that claim.
I linked you to a page specifically about that 14 hours ago elsewhere in this thread.
Pretty sure the user you're replying to is a troll or a literal child. The rest of their conversations about this topic didn't go much better.
That's so surface level, it's basically insulting and doesn't support the argument you're making. It's just some website saying random stuff that could or could not be true.
you might think that japanese boomers have generational wealth in form of real estate. this is not really the case, especially for rural population. houses aren't built to last, lose value like motherfucker and are commonly demolished after 20-30 years, in part because people don't like second hand, in part because there's no point of building anything sturdier if typhoon or earthquake takes it. there is some newer construction that is intended to last longer, but it's not a very common thing. so a reverse mortgage type thing won't exist there, and yeah lots of people will get shafted by these conditions
Not to mention that with a declining population the value of real estate is likely going to decline as well since there's less demand for it. Especially in those rural areas, people are moving to the cities.
They won't starve and live in the streets because something will change before society reaches that stage, but theoretically it's not impossible. In Japan, for example, a significant chunk (unsure if a majority) of homeless people are elderly men.
so wages in care work are rising?Who can pay those higher wages? The impoverished older generation? Or three state that is not able to keep up with the costs of pensions?
If you keep taking out more than was put in the fund to fund the larger population in retirement, at some point there's just nothing left.