In the modern world, there is one problem that has not been solved by any state – the problem of declining birth rates. Its level is falling rapidly even in those countries where it still exceeds the population replacement level (equal to 2.1 – i.e., at least 210 children must be born per 100 women). Why this is a problem hardly needs explaining. But if someone still does not understand, we will only point to one consequence – a decrease in population will be followed by a decrease in production levels, economic decline, and a slowdown in technological progress. Industrial production, even of simple goods, involves a vast amount of labor, and there is nothing to say about technologically complex goods – their production chains involve millions of people from different parts of the world at once. Also, the more people there are, the more entrepreneurs, innovators, and creators there are, capable of significantly improving the lives of all humanity through their inventions.
So far, it is not possible to fully automate many production processes (and even for that, inventors are needed, of which there will also be few in a small population). And solving the problem through the encouragement of immigration has its own disadvantages (and it will not work in the future, with a global decline in birth rates). Therefore, the task of solving the demographic crisis has long been before government authorities. But so far, they have failed miserably! As studies demonstrate, almost all states pursuing “pronatalist” policies have not achieved their intended goals. Moreover, this costs enormous sums and is a burden on taxpayers, which only worsens the situation. The demographic crisis is definitely not solvable through state instruments, and statisticians who believe state intervention is the solution to all problems must recognize this.
What could be done is to reduce the level of state intervention. “First, do no harm” – this is exactly the principle that must be followed. And states certainly do cause harm. Through their restrictions and regulations, they reduce the housing supply on the market, which significantly increases its cost. And the increase in taxes, prohibitive regulations, and tariffs on construction materials only exacerbates this problem. Regulations, taxes, and tariffs also make many other goods necessary for having children significantly more expensive and inaccessible, including even most basic food. Similarly, this applies to education and medicine.
The hyper-regulation of life and economic activity makes having children an unbearable burden, for which even handouts in the form of financial assistance to parents are nowhere near enough to cover the costs (and such handouts themselves are a tax burden). The state also does harm by attempting to take matters into its own hands. For instance, in Hungary, infertility clinics were nationalized and subsidized at the government’s expense. However, this only led to a decrease in the supply of their services and an increase in waiting times. Ultimately, through its decisions, the state both restricts human freedom and exacerbates birth rate problems. And what will the statists say to this?
Also, many people usually forget about the psychological factor, where the stress of a regulated life suppresses reproductive function. Zoo workers know well that many animal species do not reproduce at all in captivity, regardless of how good the conditions are in terms of nutrition and care. Humans are one of the biological species and, accordingly, are also subject to this phenomenon.
Researchers believe that to solve the demographic crisis, it is necessary to look toward the deregulation of all aspects of life—labor, trade, medicine, education, housing, and security measures—to relieve the constant stress from interference in life and reduce the “cost” of having children. As long as the total fertility rate remains below the replacement level, statists have no moral right whatsoever to support any policy that restricts human freedom. Otherwise, they are essentially supporting the degeneration of the nation, something they need to be reminded of every single time!
