The High Cost of Living and High Taxes are Discouraging the Japanese from Having Children

Posted by PITHOCRATES - May 12th, 2012

Week in Review

The Japanese aren’t having enough babies.  They have an aging population, a declining birthrate and a debt that will probably hit 250% of GDP.  Meaning they owe more than twice the sum total that their nation produces in economic activity.  You add that all together and it paints a very bleak future for Japan (see Lack of babies could mean the extinction of the Japanese people by David Piper posted 5/11/2012 on FOX News).

Japan has a problem, a lack of children, and it seems likely there will be even fewer in the future…

Government projections show the birth rate will hit just 1.35 children per woman within 50 years, well below the replacement rate…

The question everybody asks is why is there a lack of children..?

One reason is the cost. Japan is an extremely expensive country and getting a child through college can wipe out a family’s finances…

More than 20 percent of Japan’s people are aged 65 or over, one of the highest proportions of elderly in the world.

Japan’s graying population is a real problem for the country’s leaders as they need to ensure the dwindling numbers of workers can pay for all the care needed for the growing army of pensioners.

They give other possible explanations for the falling birthrate.  From a preference to technology over human companionship to low libidos.  But that last thing about the growing army of pensioners must be weighing heavily on the minds of the young.  Fewer people paying for a growing army of pensioners can mean only one thing.  Each individual is going to have to pay more in taxes to pay for these pensioners.  And Japan being one of the most advanced nations in the world it’s a fair assumption that they are familiar with math.  When the young today use math and crunch these numbers they can see only one result.  They will not be able to afford to raise a family if they will be parenting this army of pensioners.

Birth rates are important.  The only way you can pay for an expanding welfare state is with an increasing birthrate.  Adding more workers each generation to the workforce.  Always increasing the number of young taxpayers.  So the young can grow at a greater rate than the pensioners.  Only then will Japan NOT be an extremely expensive country to live in.  And the young may once again consider raising a family.

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