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Low Birth Rates Threaten Economic Growth – Proposals Fall Short – It’s Why Immigration Matters | VIDEO

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*As the U.S. birth rate continues to decline, the issue has become a major political talking point, especially among conservative advocates and lawmakers. Elon Musk recently called the falling birth rate “the biggest danger civilization faces,” while some Republicans are pushing for policies aimed at encouraging more children. However, there is little evidence that these proposals will reverse the trend, as Axios reports.

So What. Why Does it Matter?:
The record-low birth rate in the U.S. threatens future economic growth by reducing the size of the workforce, potentially leading to labor shortages and decreased productivity. Fewer workers in the coming years also mean fewer caregivers for an aging population. Without an increase in immigration or substantial policy changes, these challenges could intensify.

Global Context:
This declining birth rate is not exclusive to the U.S.; it’s part of a global phenomenon. In most wealthy countries, birth rates have dropped below the “replacement level” of 2.1 births per woman, the number needed to maintain population size. By 2050, three-quarters of countries worldwide are expected to fall below this level, according to a Lancet report from this spring.

Proposals and Limited Results:
Republican lawmakers like J.D. Vance and Donald Trump have floated several ideas to address the birth rate issue. Vance has proposed that the government should cover the cost of childbirth, while Trump has mentioned “baby bonuses” and government-funded in-vitro fertilization (IVF) for older women.

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Yet, research shows that these pro-natalist policies have had minimal impact in countries that have already tried them. “No one’s going to have a kid because they get an extra $2,000 a year,” says Phillip Levine, an economics professor at Wellesley College who studies fertility rates.

Similarly, countries in Europe that offer childcare subsidies or paid parental leave have seen only small gains in birth rates. These efforts are not expected to reverse the overall decline.

Political Responses and Fumbles:
Though the issue is gaining attention among U.S. politicians, their responses have been criticized for lacking substance. When asked how he would address childcare costs, Trump suggested raising tariffs as a solution, while Vance implied that extended family members like grandparents could help care for children. Vance also blamed regulations for a shortage of childcare workers, inaccurately claiming that they need a “six-year college degree” to do the job.

In contrast, Trump’s campaign highlights his first-term policies, which doubled the child tax credit to $2,000 and introduced paid family leave for federal workers. Vance has proposed raising the child tax credit to $5,000, but it’s unclear whether these measures will significantly affect birth rates.

US birth rate decline fuels political debate, especially conservatives. // Low Birthrate baby - EURai
Low Birthrate baby – EURai

The Bigger Picture:
Despite the political panic surrounding the falling birth rate, experts like Charles Kenny from the Center for Global Development see this decline as a sign of progress. Improvements in healthcare, education, and women’s rights mean that parents are having fewer children and investing more in each one. While birth rates may never return to previous levels, this shift reflects advancements in equality and public health that are unlikely to reverse.

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