Posts tagged with: demographics

Joe Carter recently posted a summary of a new study conducted jointly by Public Religion Research Institute and Georgetown University’s Berkley Center for Religion, Peace, and World Affairs that shows that college-aged Millennials (18-24 year olds) “report significant levels of movement from the religious affiliation of their childhood, mostly toward identifying as religiously unaffiliated.” He also noted the tendency of college-aged Millennials to be more politically liberal.

Just yesterday, the same study was highlighted by Robert Jones of the Washington Post, who wrote,

According to a newly released survey, even before they move out of their childhood homes, many younger Millennials have already moved away from the religion in which they were raised, mostly joining the growing ranks of the religiously unaffiliated.

Jones goes on to say, “These findings have profound implications for the future of religious denominations that have, in the past, dominated American religious life.”

But is this true? I am not entirely convinced. (more…)

Younger Millennials (ages 18-24) report significant levels of movement from the religious affiliation of their childhood, mostly toward identifying as religiously unaffiliated, according to a new survey from the Public Religion Research Institute and Georgetown’s Berkley Center. The survey also finds that they support government intervention to address the gap between the rich and poor.

Some of the highlights from the survey include:
(more…)

A recent study by Millennial Branding reveals that

“Owner” is the fifth most popular job title [listed on Facebook] for Gen-Y [i.e., Millennials] because they are an entrepreneurial generation. Even though most of their companies won’t succeed, they are demonstrating an unprecedented entrepreneurial spirit.

The study does not speculate on the causes of this upsurge in enterprise and creativity among 18-29 year-olds, but no doubt “Mother Necessity” has her hand in it somewhere. Our country and world are facing serious financial crises and offering us little assurance of any positive resolution before we are handed the reins of the world. This last summer’s gridlock in Congress over our looming default was a case-in-point, and the Eurozone crisis continues to cast a gloomy shadow on our economic future.

That Millennials are becoming increasingly more entrepreneurial in light of this, however, is a glimmer of hope. While it will surely take key contributions from members of every generation in their various callings to steer clear of economic disaster (or recover from it), we can at least take comfort in the fact that with the increase of Millennial entrepreneurs (even if “most of their companies won’t succeed”), there is good reason to hope for future job and wealth creation so vital to economic stability and recovery.

In my post “The Church, Vocation, and Millennials,” I examined a recent Barna study’s analysis that one major reason that Millennials are leaving Christianity behind has been a neglect to link vocation and faith in much of their religious upbringing. This most recent Millennial Branding study highlights a specific vocation that ought not to be neglected: entrepreneurship. As Fr. Robert Sirico writes in The Entrepreneurial Vocation, the “chosen profession” of entrepreneurs “deserves to be legitimized by their faith.”

Christians once believed that their faith was a way of life (the Way, in fact). Assuming that this study is accurate, if Church leaders want their community to stop hemorrhaging Millennials, an increased focus on how that Way of Life, the Gospel of Jesus Christ, permeates their vocations—especially entrepreneurship—would be welcome.

Urban prairie Detroit 2I wrote a bit about my short essay describing some of the principles and concepts at play concerning intergenerational ethics and economics. There are also important intergenerational cultural consequences following the Great Recession. A decade ago there was much concern about the rootlessness of current generations and the transience of the workforce. But that ability for workers to move quickly to new jobs in other cities and states has been undermined by the housing crash. Most anyone who bought a home in the last decade will not be moving anywhere anytime soon.

As Robert Bridges contends in a WSJ op-ed, “Coming generations need to realize that while houses are possessions and part of a good life, they are not always good investments on the road to financial independence.” The “ownership society” means something far different today than it did even a decade ago.

In her book How the West was Lost, Dambisa Moyo describes well some of the background leading up to the housing crash. One of the contributing factors was this cultural ideal of a “homeownership” society and resulting government policy to promote homeownership. She contends,

The direct consequence of the subsidized homeownership culture was the emergence of a society of leverage, one where citizen and country were mortgaged up to the hilt; promoting a way of life where people grew comfortable with the idea of living beyond one’s means.

She also judges that there are significant intergenerational implications:

Under the government guarantee system which propels the rapid appreciation of house prices, the only winners are those who can downsize (downgrade) their housing, or move to a different area, and buy a smaller (cheaper) place. Everyone else loses…. This ‘escalator’ effect continues until the time that the kids go to college. It’s a wealth transfer from the younger generation to the older generation as house prices become more expensive.

One of the effects of what Moyo calls “government guarantee system” is that resources (capital) was increasingly invested in homes that might have been invested in other, more productive, sectors.

An incisive piece by Roben Farzad explores why the aftereffects of the housing bubble are not likely to go away anytime soon. He quotes Doug Ramsey of Minneapolis investment firm Leuthold Group, “a student of asset bubbles,” who says, “The housing decline will be a long, multiyear process, and the multiplier effect across the economy will be enormous.”

Jonathan Smoke, head of research for Hanley Wood, a housing data company, argues, “We’ve gone through a period when we should have been tearing down houses. The supply of total housing stock is beyond what is necessary.”

Why then are we still celebrating “new housing starts” as signs of a rebounding economy rather than a continuation of misplaced investment and cultural priorities?

Blog author: jballor
Monday, March 14, 2011
By

It’s been awhile since I’ve done a summary post of this kind, but there’s been a fair number of things of interest over the last week or so that are worthy of a quick highlight. So here’s an edition of the aptly named “Five Things” (HT):

  • Carl Trueman reflects on his visit to the Acton Institute. Concerned about how his Republocrat credentials might come across, Trueman says, “Despite my fears that I might be heavily outgunned at Acton, the seminar actually turned out to be great fun. I had, after all, never before lectured in the back room of a pub, with a pint of Pale Ale in one hand and a notebook in the other. And I thoroughly enjoyed the opportunity of arguing that Mrs Thatcher, and not the trendy Left, was the real radical of the eighties and had actually done much to shatter the class ossification that had gripped Britain for generations.” You can listen to Trueman’s Acton on Tap visit here.

  • John H. Armstrong discusses his relationship with the Acton Institute. Fresh off a visit to Rome, where among other things he spoke at an event for Istituto Acton, our Rome office, John Armstrong writes of his first impressions of the institute: “I felt like I had wandered in from the cold. As I listened to Catholic and Protestant scholars explain the freedom of markets and governments, all rooted in virtue, I felt as if I was drinking from a fountain that I had been searching for over the course of my whole life. I was frankly tired of political partisanship as a way to change culture. I wanted to connect with people who saw a better way to make a real difference in society without overtly linking their vision and efforts to raw party politics. I also wanted a different paradigm for understanding principles of economic freedom that was not rooted in the modern ideas of socialism, captialism, etc.”

  • Napp Nazworth chides me for putting principle above prudence. After starting a blog to stop feeling “the need to be somewhat secretive with what I say about my religious and political views, particularly, in my easily found online writings,” Napp Nazworth opens with a series of posts on “A Call for Intergenerational Justice,” in which he writes, “The time for action on our federal budget crisis is now, and Congress can only accomplish this task by working in a bipartisan manner. Solutions to the crisis will be painful to many voters. Neither political party, therefore, will tackle the problem by itself because to do so would be disastrous for that party at the next election.”

  • Greg Forster has some questions about “A Call for Intergenerational Justice.” In his inaugural post at the First Things blog “First Thoughts,” Greg Forster wonders about “A Call for Intergenerational Justice,” asking, “Will democratic debate be well served if people who admit that they don’t know the difficult details behind the policymaking get up on a high horse and proclaim what the reform agenda must include – with the (barely) implicit suggestion that anyone who disagrees is an enemy of the public good – or of God?”

  • David Mills rebukes the “Evangelical Left” for coming late to the debt-denouncement party. Sticking with First Things for a “A Call for Intergenerational Justice” trifecta, in a piece “On the Square” today at First Things, David Mills notes the Acton Institute engagement of the Call, but contends in particular that the signers of the document, the “Evangelical Left” in his view, “are very late to the party, and they ought to apologize for being late before they start talking about it as if they’d helped plan it.”

Last Thursday at Rome’s (but technically part of Vatican City) Pontifical Lateran University, Istituto Acton held a day-long conference on “Ethics, Aging and the Coming Healthcare Challenge.”

It was a successful event, if a bit unusual compared to some of our other Roman gatherings. It’s not often that an Acton conference is so focused on the finality of death, after all; we often stick to the other “inevitability” of life, i.e. taxes. Yet in both spiritual and economic terms, there’s no sense in denying it.

The conference covered many different aspects of the changing demographics affecting health care, ranging from declining fertility rates to pharmaceutical research to pensions to hospice care. One of the main objectives of the conference was to help participants understand how both ethics and economics can work together to help us confront the challenge of aging populations.

The conference was co-sponsored by the Pontifical Council for the Family, the John Paul II Institute for the Study of Marriage and Family, the Centro di Orientamento Politicio, Associazione Famiglia Domani, Human Life International, and Health Care Italia. As you can tell from the nature of these organizations, we sought to place health care issues in the context of the family, following Catholic social teaching’s emphases on this fundamental institution and the principle of subsidiarity.

Here are audio clips from three of our speakers who appeared on Vatican Radio’s English World News service:

Bishop Jean Laffitte, secretary of the Pontifical Council for the Family, click here

Dr. Daniel Sulmasy of the University of Chicago, click here

Dr. Michael Hodin, executive director of the Global Coalition on Aging, click here

For the first time, we live-streamed a conference on the Acton website, and we’ll soon post the conference papers and presentations as well as related media on the Istituto Acton webpage.

Take at look at Jonathan Last’s very good piece in the Weekly Standard about the real population problem that is confronting the world–people aren’t having enough babies. In America’s One Child Policy, Last explains how fertility throughout the entire world is declining and what the impact will be on society and the economy.

During the last 50 years, fertility rates have fallen all over the world. From Africa to Asia, South America to Eastern Europe, from Third World jungles to the wealthy desert petro-kingdoms, every country in every region is experiencing declines in fertility. In 1979, the world’s fertility rate was 6.0; today it’s 2.6. Industrialized nations have been the hardest hit. America’s 2.06 is one of the highest fertility rates in the First World. Only Israel (2.75) and New Zealand (2.10) are more fertile.

Mr. Last addresses a host of reasons for declining fertility, including some of the politically delicate reasons like education, abortion, and egalitarian social policies that many don’t want to address.

He explains how the one-child policy in China and other small-family campaigns in places like Singapore and Japan have not created the promised “bright future” but serious demographic challenges. And new government policies to reverse the trends are not working.

The Japanese government has been trying to stoke fertility since the early 1970s. In 1972, when Japan’s fertility rate was still above replacement, the government introduced a monthly per-child subsidy for parents….In the face of 35 years of failed incentives, Japan’s fertility rate stands at 1.2. This is below what is considered “lowest low,” a mathematical tipping point at which a country’s population will decline by as much as 50 percent within 45 years. This is a death spiral from which, demographers believe, it is impossible to escape. Then again, that’s just theory: History has never seen fertility rates so low.

As Last and others have reminded us, no country with declining population has ever created widespread prosperity. Perhaps we would do well to remember that the factors of production include not just land and capital, but labor–and labor means people. Decline in fertility will have serious social and economic consequences. Last writes:

At the same time, the average age in China will rise dramatically. In 2005, China’s median age was 32. By 2050, it will be 45, and a quarter of the Chinese population will be over the age of 65. The government’s pension system is almost nonexistent, and One-Child has eliminated the traditional support system of the extended family—most people no longer have brothers, sisters, aunts, uncles, cousins, nieces, or nephews. It is unclear what sort of havoc this atomization will wreak on their society. China will have 330 million senior citizens with no one to care for them and no way to pay for their upkeep. It is, Eberstadt observed, “a slow-motion humanitarian tragedy already underway.”

By 2050, the age structure in China will be such that there are only 1.6 workers—today the country has 5.4—to support each retiree. The government will be forced to either: (1) substantially cut spending (in areas such as defense and public works) in order to shift resources to care for the elderly or (2) impose radically higher tax burdens on younger workers. The first option risks China’s international and military ambitions; the second risks revolution.

Though people still promote Malthusian nightmares of over-crowded planets the real demographic disaster not over-population, but the opposite–not enough babies. This decline in fertility is a prime example of why incentives matter–summed up well in Henry Hazlitt’s definition of economics:

“The art of economics consists in looking not merely at the immediate but at the long effects of any act or policy; it consists in tracing the consequences of the policy not merely for one group but for all groups.”

Acton’s Rome office will be hosting a conference on health care and aging on December 2 at the Lateran Pontifical University in Rome. Get more information here

Last month, in “Europe’s Choice: Populate or Perish,” Acton Research Director Samuel Gregg observed:

At a deeper level … Europe’s declining birth-rate may also reflect a change in intellectual horizons. A cultural outlook focused upon the present and disinterested in the future is more likely to view children as a burden rather than a gift to be cared for in quite un-self-interested ways. Individuals and societies that have lost a sense of connection to their past and have no particular interest in their long-term destiny aren’t likely to be worried about a dearth of children. Here Europe’s generation of 1968—which promoted a radical rupture with the past and is intensely suspicious of anything that might broaden people’s outlooks beyond the usual politically-correct causes—has much to answer for.

In “America’s Parent Trap,” Washington Post columnist Robert J. Samuelson picks up the same theme noting that, “Our society does not — despite rhetoric to the contrary — put much value on raising children.” He takes a closer look at tax policy, among other factors, and the way it financially punishes parents.

While having a child is a deeply personal decision, it’s also shaped by culture, religion, economics and government policy. “No one has a good answer” as to why fertility varies among countries, says sociologist Andrew Cherlin of Johns Hopkins University. Eroding religious belief in Europe may partly explain lowered birth rates. In Japan, young women may be rebelling against their mothers’ isolated lives of child-rearing. General optimism and pessimism count. Hopefulness fueled America’s baby boom. After the Soviet Union’s collapse, says Cherlin, “anxiety for the future” depressed birth rates in Russia and Eastern Europe.

In poor societies, people have children to improve their economic well-being by increasing the number of family workers and providing support for parents in their old age. In wealthy societies, the logic often reverses. Government now supports the elderly, diminishing the need for children. By some studies, the safety nets for retirees have reduced fertility rates by 0.5 children in the United States and almost 1.0 in Western Europe, reports economist Robert Stein in the journal National Affairs. Similarly, some couples don’t have children because they don’t want to sacrifice their lifestyles to the time and expense of a family.

We need to avoid Western Europe’s mix of high taxes, low birth rates and feeble economic growth. Young Americans already face a bleak labor market that cannot instill confidence about having children. Piling on higher taxes won’t help. “If higher taxes make it more expensive to raise children,” says demographer Nicholas Eberstadt of the American Enterprise Institute, “people will think more about having another child.” That seems common sense, despite the multiple influences on becoming parents.

Read Samuelson’s column on the Washington Post website.

Also this week in Acton Commentary, Acton Research Director Samuel Gregg observes that “Europe’s declining birth-rate may also reflect a change in intellectual horizons.”

Europe’s Choice: Populate or Perish

If there is one thing the global economic crisis has highlighted, it’s the need to make choices—sometimes very difficult choices. At the June G-20 summit, for example, several European governments made it clear to the Obama Administration that they do not believe you can spend your way out of recessions. Unlike America, countries such as David Cameron’s Britain and Angela Merkel’s Germany have chosen the politically-risky but economically-brave path of austerity and public-sector spending cuts.

In some instances, these measures may not be enough to prevent countries such as Greece and Portugal from sovereign-debt defaults. Still, the alternatives are ever-rising government debt-to-GDP ratios (which invariably prolong stagnation as has occurred in Japan since the 1990s) or attempts to simply inflate the debt away (thereby risking the terrible experience of 1920s Germany or America’s 1970s economic malaise).

In the end, however, escaping the Great Recession’s effects is going to require more than spending cuts. The only long-term way out is economic growth. Here, however, much of Europe faces a problem that most non-European countries do not. The challenge is one of an overall population decline and an aging population. As stated in a 2006 IMF report, “The population of the 25-member European Union in coming decades is set to become slightly smaller—but much older—posing significant risks to potential economic growth and putting substantial upward pressure on public spending.”

However one examines the statistics, the demographic picture for Europe—including Eastern Europe and Russia—is bleak. Statistically-speaking, the numbers of births per woman required merely to maintain a population’s size is 2.1 children. Not a single European country meets that figure today. Germany’s birth-rate, for instance, is 1.38. Italy’s is 1.41. Spain’s is 1.39. France and Britain are doing comparatively well at 2.0 and 1.94 respectively, but—you guessed it—Greece is the lowest in the EU.

Nor is any consolation to be found in the aging statistics. In Belgium, the percentage of the population over 65 will increase from 16 percent to 25 percent by 2050. In 2007, a World Bank document stated that by 2050 approximately half of Spain’s population will be 55 or older.

The reasons for these trends are many. The twentieth century’s two world wars tore large generational holes in Europe’s demographic landscape. Women are also having children later in life. There also seems to be a broad correlation between increasing material prosperity and diminishing population growth. Then there is the greater access to contraception from the 1950s onwards.

But more subtle cultural factors may also be at work. For one thing, it’s striking how many Europeans are reluctant to discuss the subject of their population decline. This may owe something to an association of calls to have more children with the population policies of totalitarian regimes such as Hitler’s Germany, Stalin’s Russia, Mussolini’s Italy, and Ceauşescu’s Romania. Another factor may be many Europeans’ susceptibility to population-growth alarmism, as manifested in many European governments’ aggressive promotion of population-control in developing countries (which strikes some as verging on neocolonialism).

At a deeper level, however, Europe’s declining birth-rate may also reflect a change in intellectual horizons. A cultural outlook focused upon the present and disinterested in the future is more likely to view children as a burden rather than a gift to be cared for in quite un-self-interested ways. Individuals and societies that have lost a sense of connection to their past and have no particular interest in their long-term destiny aren’t likely to be worried about a dearth of children. Here Europe’s generation of 1968—which promoted a radical rupture with the past and is intensely suspicious of anything that might broaden people’s outlooks beyond the usual politically-correct causes—has much to answer for.

Immigration is one way for European countries to escape these conundrums. After all, it has proved to be one of America’s engines of economic growth and continues to help the United States avoid the population trap in which Europe now finds itself. For decades, Western Europe relied on immigration, especially from Islamic countries, for cheap labor, especially for those unpleasant jobs some Europeans prefer not to do.

For the moment, however, increased immigration doesn’t appear to be an option for Europe. The policies of multiculturalism have failed and produced such deep fractures in many European societies that most European governments are presently reducing immigration from non-European countries.

Is demography destiny? It need not be. Demography is only one variable among many. Moreover individuals and nations can make choices, and choices change our future. Sometimes circumstances, such as the global economy’s present problems, can provide the incentive and opportunity to break away from apparently unalterable paths.

The clock, however, is ticking. The longer Europeans fail to address their demographic difficulties, the smaller becomes their room for maneuver, and the more likely Europe will be reduced to being a bit-player on the world’s political and economic stage.

The loss would be not only Europe’s, but ours as well.

Dr. Samuel Gregg is Research Director at the Acton Institute. He has authored several books including On Ordered Liberty, his prize-winning The Commercial Society, and Wilhelm Röpke’s Political Economy.

LifeSiteNews.com recently asked me to comment on statements made by Ettore Gotti Tedeschi, president of the Vatican bank, about the economic effects of demographic decline in Western industrialized countries. Tedeschi told the Zenit news service that the “true cause” of the financial crisis is the low birth rate in these countries.

“Instead of stimulating families and society to again believe in the future and have children […] we have stopped having children and have created a situation, a negative economic context decrease,” Gotti Tedeschi observed. “And decrease means greater austerity.”

“With the decline in births,” he explained, “there are fewer young people that productively enter the working world. And there are many more elderly people that leave the system of production and become a cost for the collective.

“In practice the fixed costs of this economic and social structure increase. How dramatically they increase depends on how evidently unbalanced the structure of the population is and how much wealth it has. The fixed costs however increase: The costs of health increase and the social costs increase.”

This is from reporter Peter J. Smith’s article on LifeSiteNews.com:

Sirico explained that the Vatican economist’s view opposes that of population control groups, who subscribe to a different vision of economic activity: what he called a Marxist or “redistributivist” paradigm: “If there is a pie and there are more people added to the pie then there is more poverty.” But the reality, Sirico says is that “the pie is dynamic.”

“Mr. Tedeschi is saying is that: no, the human person is himself creative. Human beings are not mouths that consume, but minds that produce,” he said. Sirico added that John Paul II hit on this very point in his social encyclical Centesimus Annus, when he wrote that “Man is man’s greatest resource.”

Because human beings are also creative producers, the excess of what they produce becomes the basis for trade in the economy, and the creation of wealth, said Sirico. Contrary to population controllers obsessed with overpopulation, he noted, it is incredibly population dense cities like Tokyo and Hong Kong that are incredibly rich, while sparsely populated areas of the globe such as Angola are comparatively very poor.

Read “President of the Vatican Bank: Zero Population Growth Responsible for World-wide Recession” on LifeSiteNews.com