Can the Government Get People to Have More Babies?
October 13, 2024
In 1989, Japan seemed to be an unstoppable economic superpower. Its companies were overtaking competitors and gobbling up American icons like Rockefeller Center. But inside the country, the government had identified a looming, slow-motion crisis: The fertility rate had fallen to a record low. Policymakers called it the “1.57 shock,” citing the projected average number of children that women would have over their childbearing years.
If births continued to decline, they warned, the consequences would be disastrous. Taxes would rise or social security coffers would shrink. Japanese children would lack sufficient peer interaction. Society would lose its vitality as the supply of young workers dwindled. It was time to act.
