jfrost wrote:That said, I don't know why people worry so much about declining populations. Do populations always have to grow?
Most governments of developed economies prefer a population to at least remain stable. A growing population means an economy can grow much more easily in the long term. One of the biggest problems with a decreasing population is that the value of homes decrease because there are fewer people left to buy existing homes. Since homes are by far the largest asset most people have and most countries have vast sums of wealth in real estate, a continuous decrease in those prices equals continuous deflation, one of the worst things that can happen to an economy. Home prices can rise with a declining population as long as per capita GDP grows quickly but that hasn't happened for nearly 20 year in Japan and they're in no hurry to allow the number of immigrants necessary to maintain their population.