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Lower birthrates are likely to result in slower aggregate real GDP growth.
Ernie Tedeschi noted that while overall GDP growth declines in lower-birthrate scenarios, GDP per capita is a more relevant metric for assessing well-being. His comments highlight the importance of evaluating economic prosperity through a per capita lens rather than just aggregate growth.
Tedeschi's focus on per capita measures aligns with broader trends in economic analysis, where productivity gains play a crucial role in offsetting demographic challenges. Recent patterns, such as the notable rise in nonfarm business productivity, suggest that efficiency improvements may help sustain living standards even as population growth slows.