Comment by mantas
2 days ago
I wonder what would happen given today’s demographic if mass migration was shut down. There may be similar change. But ruling class is hard at work to avoid that.
2 days ago
I wonder what would happen given today’s demographic if mass migration was shut down. There may be similar change. But ruling class is hard at work to avoid that.
The black death killed a lot of people, but mostly the old and infirm. Europe was left an extremely young and dynamic place.
Today's demographic situation also involves a shrinking population, but it's for lack of young people. The world is getting a lot older really quickly, and that means less energetic and dynamic, and it means a lot of resources flowing to older unproductive people.
Still less work hands would mean change of balance between the capital and the labour. The changes in real estate pricing, which is one of the main expenses for labour, would be massive.
It doesn't really mean that because there isn't a forever fixed amount of labor being bidded on by the workforce. That side of the market is also dynamic. As population ages and then shrinks, labor demand will also shrink. If supply and demand shrink in tandem, wages don't increase.
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