Another Baby Boom Won't Cure U.S. Economy

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Another Baby Boom Won't Cure U.S. Economy

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Why another baby boom won't save the U.S. #economy. via @CSRHUB. #csr #sustainability http://bit.ly/qKFvDX
Tuesday, August 30, 2011 - 12:00pm

CONTENT: Blog

 By Carol Pierson Holding

This article was originally published on the CSRHUB Blog. 

In the early 1980s, Daniel Yankelovich, the master market researcher, gave a presentation to ad agency staff about coming demographic trends. His analysis came to the conclusion that the growing income gap would produce an increasingly angry underclass, a boiling cauldron that would one day explode. He showed us the future through demographics. I was hooked and subscribed to the magazine American Demographics. 

So, 25 years later, when I saw the name of its founder, renowned demographer Peter Francese, in the e-newsletter Ad Age, I eagerly read his article. The piece “The Need for a New Baby Boom” proposes that two demographics, which taken together, could help with the U.S. economic recovery: The top 5% of baby boomer earners could lift consumer spending by $3-400 billion if they could be induced to spend another 10% of their incomes. By reversing the decline in birth rates, Francese argues, we would create grandchildren that boomers would lavish that extra cash on. The chart he uses to illustrate his point shows birth rates declining in every age group except the 40-44 year-olds – a small segment.

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The comments that followed the article mostly excoriated poor Mr. Francese. Only one conceded that it might be a joke, but even giving Francese that license, what modern man in his right mind would suggest that women having babies is a solution to economic woes? Especially when his primary audience, ad industry employees, is 70% women. Even a kindly gent pining for grandchildren will get no quarter in this era of Mad Men-induced hypersensitivity to sexism in the ad industry, where women are still only 7-13% of top management. 

But an equal number of comments pointed out that Francese’s recommendations were far more dangerous: the environmental ramifications of promoting population growth are lethal. As we near the date in October when the UN projects global population will reach 7 billion (ahead of original projections), the conversation is already jumping ahead 72 years to when the UN projects population will hit ten billion globally and 483 million in the U.S. A population pressure that will likely result in mass species extinction and put “extreme pressure on food production, water and non-renewable resources.” 

I do not have to enumerate to this audience what human activity is doing to our environment or why promoting higher birth rates is such a bad idea. In fact, Francese’s chart seems to be a good sign, rather than a problem that needs to be fixed. 

These issues – birth rates, income and environmentalism – came together again on Saturday in Charles Blow’s NY Times column, albeit in a different way altogether. Blow highlights the fact that nearly one in four children in the U.S. go hungry and links child poverty to the 50% increase in unwanted pregnancies as Congress continues to enact laws that restrict abortion.

Continue reading "Another Baby Boom Won't Cure U.S. Economy".
 


 

Carol Pierson Holding is a writer and an environmentalist; her articles on CSR can be found on her website.

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Keywords: Finance & Socially Responsible Investment | Ad Age | CSR | Corporate Responsibility | Corporate Social Responsibility | Economic recovery | SRI | Sustainability | population | socially responsible investing | united nations

CONTENT: Blog