April 03, 2006

 Europe: nobody goes there any more; it's too crowded.

Posted by Andrew Sabl

Mike O'Hare's recent post on population declines in Europe in general, and Italy in particuar, leaves me baffled. His post gives us plenty of reason to believe (as if it were in doubt) that Europe's old-stock population continues to decline, but no reason to share his conviction that this should worry Europeans, let alone us. And indeed, I doubt that there is such a reason. Consider:

1. As anybody who's spent time in Western Europe can attest, the place is crowded. Italy, Mike's central case, has the fifth-highest population density in Europe at 200 per square kilometer (the U.S. is at about 31, meaning plenty of room both for those who like the Eastern seaboard—operationally part of Europe—and those who prefer the rest of the country, which is modeled on Scottish borderlands). Germany is even denser.

Research question: are many of the countries with the lowest birthrates also those with highest population density? (I mean relatively stable and prosperous countries, not Russia or such. ) To the extent that they are, the alleged problem of decreasing population is self-correcting. If having kids is a financial sacrifice because spacious houses in suburban Frankfurt are expensive, it will be much less of a sacrifice when ancestral farmhouses in Tuscany can be had for a song. (Why? No heirs.) Yes, this reasoning is crude, and I'm using aggregates when the action is more localized. But actually, an analysis that did justice to local variation would probably give us even less cause for alarm. Nobody has kids in San Francisco because you now need to be an investment banker to buy a house. But this has no implications, or positive ones, for population in Arizona, or the country generally—or even in California as a whole.

2. Even if population decline isn't self-correcting, it has no implications regarding "the looming extinction of Italians." Italy only had 36 million people in 1920 as opposed to 57 million now. Were there no "Italians" in 1920, no Italian art or culture, no Italian cooking? A negative exponential growth rate takes in theory an infinite amount of time to take you to zero. Of course, extrapolating the growth trend forever makes no sense, but the point is that a big country can lose people for a long time and still have plenty enough to sustain any desired level of cultural survival. In fact, older people probably have disproportionate taste, and time, for the often-outdated traditions that we tourists gloss as a country's essence. (Most French people don't smoke. Most Brits prefer curry to meat pies and wine to ale.)

3. If Italy and Germany really want more Italians or Germans, they can get them the way the New World has always gotten them: immigrants, and in particular a culture that considers the kids of immigrants full members of the national society. Nobody in my mother's family, when she was born in suburban Zurich, would have thought her reproductive cycle a likely future source of plain old Americans, but there you go. Europe's population problem is a nativism problem, and deserves no more sympathy there than nativism deserves here.

4. The reason Italian and German women (and educated native-born American women, in fact, whose fertility rate is not too different from Europeans') have fewer kids than they used to is that they have more opportunities and better things to do than change diapers. This is a good thing. I have nothing against kids; in fact, I like being around kids more than most successful men probably do, and love my three-year-old to pieces. But rearing him, which work I split equally with my wife, can be stressful and exhausting, and I don't wonder that few two-career families want to play the replacement game of having more than two. Those who want higher birthrates have the burden of explaining who exactly is supposed to replace the half the population that used to have "involuntary governess" as their only career choice. (Yes, I know that many women both here and in Europe "wish they could have more kids." But this seems to me equivalent to the finding that most voters wish for more services and lower taxes. What we really "wish," tradeoffs and all, is what our life-choices demonstrate. And I'd also like to see more attention to men's preferences in these surveys, including their willingness to take on vastly increased child care responsibilities themselves, something their partners would often like but know they'll rarely get.)

5. What's wrong with fewer people? Unlike some, I'm not talking about the environmental benefits thereof (though perhaps Mike, if he also feels like Cassandra on global warming, might map out further the links between his two issues). I just honestly wonder what the big deal is either way. When I was a kid in the 70s, the U.S. had less than 220 million people. Now it has almost 300 million. Are we "better" as a result? Is American culture necessarily more vibrant, our society more admirable? I'm not being nostalgic, just skeptical: the quality of a society and its size seem unrelated to me. Granted, in geopolitical terms a large population is useful for throwing one's military and economic weight around. But Germany and Italy more or less stopped playing that game, out of choice, shame and outside pressure, long before their population growth turned negative. Does anybody think that a few more kids in Old Europe would change that, and does the world's welfare necessarily depend on this change happening?

I have no doubt that population decline is wrenching. It requires profound adjustments in school funding, pensions, health care, land use, infrastructure, everything. Such adjustments are even more profound in countries where tradition and interest-group structures ossify public policy. (If there are fewer kids there can also be fewer schools, but that's hard to accomplish where teachers' unions are strong; if there are fewer young workers older workers should command a high wage for staying in their jobs, but that's unlikely to happen where people expect to retire "like their grandparents.") But explosive population growth is no picnic either, as anyone living in immigrant-rich Southern California can attest, and I see no reason to lament the former more than the latter. None of these things is inherently good or bad.

To measure a country's well being by its growth in population is a VERY old habit; ancient historians did it, and the Enlightenment made a fetish of it. Perhaps it even made sense when a country could only survive through producing young men for war and when low population tended to come from pestilence and famine. But I think it's a habit we should drop. Leisure, culture, and independence are normal goods. As countries prosper, their inhabitants produce more of them—and, on aggregate, fewer kids.

CORRECTION: I originally listed the population density of the U.S. as "about 80," mixing up the U.S. number in square miles with the European numbers in square kilometers. Thirty-one per square kilometer is right. Western Europe is, compared to the U.S., even more crowded than I thought.

UPDATE: Mike's rebuttal is here and my surrebuttal here—I meddled with the thread names, so that might not have been obvious.

Posted at 11:38 AM | TrackBack (0) | |

Comments

Excellent article. Thought provoking.

Besides the adjustment trauma, which you explain quite nicely, I think much of the handwringing has to do with the "throwing ones military and economic weight around" aspect. Even the most enlightened cultures succumb to nationalism, and nationalism is about national competition, most pointedly in economic and military terms.

But there is also another school of handwringing, darker and harder to deal with, which is about who replaces declining populations. As Edward Glaeser has pointed out, much of the infrastructure that supports a population level is expensive and durable, making it unlikely that cities or dwellings constructed for a large population will be simply razed to accomodate a more modest one. So if a population is not replacing itself, and facilities are to be utilized, demographic changes must occur. Managing the character and manner of those changes is what makes declining birthrates such a nettlesome issue in many countries.

Posted by: Steve Waldman at April 5, 2006 01:59 AM

Well, I guess that one important point in reply to Mark’s message has been overlooked- there will be more old people in Europe in the nearest future than there are currently today; so current problem is the dearth of young people who can support Welfare System of European states (this problem in my opinion has nothing to do with the density of the population which is a relative measure anyway. The USA could be considered overcrowded country compared with such nations as Canada and Australia or even some European ones such as Sweden or Finland for instance). Yet, practically all European developed nations (with high and low density of the population) face demographic crisis.

Whereas in 1995, the population over 65 constituted 15.4 percent of the European population, this age group will rise to 22 percent in 2005. As far as Italy is concerned it has one of the lowest fertility rates in the continent. Granted, with higher standards of living as well as better health services, the Italian population will not fall dramatically within the next twenty years, yet who will sustain Italian pensioners? that is the question one has to ask. So, the point is not to increase the population per se, the point is to increase the number of young workers.

What is wrong if there are fewer people (in European case MORE old people)?! In this pessimistic, but alas realistic scenario the pressure on health services will increase as well as taxes (as there would be fewer people who can support welfare system), neither it is possible to predict what crisis might develop in pension system. In my opinion, the population of Europe should increase; this is the only possible efficient solution.

Posted by: Anthony at April 5, 2006 07:26 AM

There is nothing inherent in declining population in general that warrants worrying about. It is the specifics of demographics and the European welfare system that makes declining population in European countries potentially worrisome. Ponzi schemes tend not to work out very well when the pyramid starts looking like an obelisk and even worse when the pyramid gets stood on it's point.

As the population declines it also ages. And with lower than replacement rates of reproduction that means that fewer of the young people, especially if a large portion of those are imported, have any familial connection to this growing horde or ever needy oldsters. Given the richness of the social benefits system there will be an increasing number of retired people being supported by a decreasing number of younger, working people and the working people won't have much inclination to give a tinker's damn about all these old people chomping away at paychecks like a gypsy moth invastion.

The seemingly obvious solution to that is to raise retirement ages but keep in mind here that we're talking about nations where people riot and strike when faced with a suggestion that they increase the workweek from 35 to 37 hours, or give up 2 days of their 6 week vacations, or even the notion of being able to hire and fire young people at will. The idea of tacking and extra 2 or 3 or 5 years of work onto the tail end would likely be taken even more seriously.

Another thing is that the European welfare states don't seem to have the same asset collection in the older segment of the population as the US does. The aging population was promised generous retirement benefits - they spent their money along the way on all those long vacations. There are no huge assets stores to be liquidated and redistributed as they die off or earlier should the tax base prove itself unable to support the welfare costs.

Yeah, so, that's their problem. Well, we all know that Europe today is populated with quiet hobbyists and pacifists culturally enriched by all their long vacations to seaside resorts all over the world. What harm can they do anyone? Unfortunately the past history of Europe when dealing with social disruptions is not encouraging. And one needn't go to ancient history to find the troublesome tendencies - these tendencies have shown themselves several times in what amounts to little more than a human lifetime.

If they chose to die away quietly and prepay the burial or crematory service, fine and dandy. Given their historic penchant for driving away the portions of their populations they can't support - or worse yet, cranking up the kilns - and for deluding themselves that they can make a better world through conquest, I wouldn't bet on them dying away quietly.

With a little luck, however, the Japanes model of robotics will bill bail them out in time.

Posted by: Knucklehead at April 5, 2006 11:08 AM

It's apples and oranges to compare countries with parts of countries, but instructive anyway. Portions of the U.S. have experienced stable to declining populations since the late 19th century (consider "ghost towns" and now the Great Plains). Areas in decline are able to coast for a long while on their past investments in infrastructure. Then, when the population gets too low the infrastructure gets abandoned.

Posted by: Bill Harshaw at April 5, 2006 11:21 AM
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