Submitted by I_Tory_I t3_z84yoi in explainlikeimfive
I've read that low birth rates and rising ages in Japan are alarming. And sure, you'll have trouble finding caretakers for the elder population, and there will be less people in the workforce, which will lower the GDP.
But to me, a drop in population will lead to more housing available, and workers being more in demand, which might lead to better working conditions.
I am not Japanese, but if I was, should I be alarmed? Is it a change for the worse, or just a... change?
phiwong t1_iy9tjn5 wrote
The problem is that this is very uncharted territory - socially, economically etc. Japan is not a small country - it still has 125 million people and it is fairly wealthy by global standards.
A "home" cannot be thought of simply as walls, rooms and a roof. Think about all the other things that come with it - roads, electricity, water, sewage etc. You'll need shops, hospitals, police, government etc to support a community. So you cannot take a simplistic view that all of this "comes for free" or "will always exist".
Infrastructure and social services need a workforce. Power stations grow old and need maintenance and replacement. Roads don't repair themselves. People need to eat. People get sick and get into accidents.
How does a large country provide for this if 40% of their citizens are retired and need additional care? Can the working population grow enough food, make enough product, etc etc if this happens?