Demographic Headwinds: Fewer Babies, Longer Lives, and What it means for the Economy

I'm Michael Klein, executive editor of Econofact, a nonpartisan, web-based publication of the Fletcher School at Tufts University.

At Econofact, we bring key facts and incisive analysis to the national debate on economic and social policies, publishing work from leading economists across the country.

You can learn more about us and see our work at www.econofact.org.

There are more old people and fewer babies.

We have a good idea why there are more old people.

Medical advances and healthier lifestyles are resulting in longer lives.

Falling birth rates are more of a puzzle.

These two phenomena together are resulting in significant demographic shifts, a change in the age profile of the population that has important economic and social implications.

My guest today, Melissa Carney, has written about both falling birth rates and the effects of an aging population.

Melissa, an economics professor at the University of Notre Dame, is also the director of the Aspen Economic Strategy Group, which recently published the report, Demographic Headwinds, the Economic Consequences of Lower Birth Rates in Longer Lives.

Among other professional affiliations, Melissa is on the boards of the Notre Dame Wilson Sheehan Lab for Economic Opportunities in the MDRC.

She served as director of the Hamilton Project at Brookings from 2013 to 2015 and is co-chair of the J-PAL State and Local Innovation Initiative from 2015 to 2018.

Melissa, welcome back to AccountaFact Chats.

It's nice to have you on once again.

It's always good to chat with you, Michael.

Thanks for having me.