Comment by missedthecue
1 day ago
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.
Real estate bubble would pop for simple reason that were would be significantly less people overall.
And much lower real estate prices could amortize a lot of wages shrinking, from labour perspective.
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