Someone finally agrees with me.
These types of demographic trends get the attention of economists when big changes might raise or lower the economy’s capacity to grow–which could be happening now. Fewer marriages and fewer children lower the rate of household formation, which means people spend less on everything from appliances to clothing. “Fertility rates have plunged, and that will have an impact on future consumer spending,” says Nigel Gault, chief U.S. economists at forecasting firm IHS Global Insight.
That trend could reverse itself if the economy picks up for good and Americans become convinced that happier days lie ahead. But for now, a dearth of babies and a limp economy may be reinforcing each other. A few more babies would be good for business.