Why Australians are having fewer kids and what it means for the economy | Alan Kohler | ABC NEWS

As if we haven't got enough to worry about, what with surging energy prices, and global debt, and global temperatures.There is an economic background radiation that makes everything else a little bit worse.It's declining fertility.In the US, UK and Australia, it's down to around one and a half births per woman, well below the replacement rate of 2 .1.Now the replacement rate is slightly above 2, which replaces both parents, mainly because not all children make it to adulthood.And the largest, most devastating decline has been in China, and their population is actually starting to shrink.

Less developed countries, mostly in Africa, are holding up the global average, but fertility is declining there too.And it's a problem because it throws out the balance between workers and retirees.More of the latter and less of the former means less tax revenue to pay for more pensions.It also causes labour shortages and lower growth and productivity.It's not all bad though.Slower population growth helps slow global warming and improve housing affordability.

But why is it happening?How about this reason?Smartphones and social media.2007 was also the year the GFC hit, but young people aren't getting out as much and are having fewer relationships.Unaffordable housing around the world is also contributing to the problem.Young couples are less likely to have kids if they can't buy a house.

It means the two main solutions to falling fertility seem contradictory, especially in the current political discourse in Australia.That is more migration and lower house prices.Now less migration, unaffordable housing and artificial intelligence providing even better alternative non -human relationships than smartphones will probably mean birth rates keep falling.So maybe we need to have less social media and more sex.