As birth rates plunge, many politicians want to pour money into policies that might lead women to have more babies. Donald Trump has vowed to dish out bonuses if he returns to the White House. In France, where the state already spends 3.5-4% of gdp on family policies each year, Emmanuel Macron wants to “demographically rearm” his country. South Korea is contemplating handouts worth a staggering $70,000 for each baby. Yet all these attempts are likely to fail, because they are built on a misapprehension.
Governments’ concern is understandable. Fertility rates are falling nearly everywhere and the rich world faces a severe shortage of babies. At prevailing birth rates, the average woman in a high-income country today will have just 1.6 children over her lifetime. Every rich country except Israel has a fertility rate beneath the replacement level of 2.1, at which a population is stable without immigration. The decline over the past decade has been faster than demographers expected.
At first glance, the world economy looks reassuringly resilient. America has boomed even as its trade war with China has escalated. Germany has withstood the loss of Russian gas supplies without suffering an economic disaster. War in the Middle East has brought no oil shock. Missile-firing Houthi rebels have barely touched the global flow of goods. As a share of global gdp, trade has bounced back from the pandemic and is forecast to grow healthily this year.
By now, Chinese President Xi Jinping’s ambition to remake the world is undeniable. He wants to dissolve Washington’s network of alliances and purge what he dismisses as “Western” values from international bodies. He wants to knock the U.S. dollar off its pedestal and eliminate Washington’s chokehold over critical technology. In his new multipolar order, global institutions and norms will be underpinned by Chinese notions of common security and economic development, Chinese values of state-determined political rights, and Chinese technology. China will no longer have to fight for leadership. Its centrality will be guaranteed.
Artificial intelligence holds huge promise in health care. But it also faces massive barriers
Better diagnoses. Personalised support for patients. Faster drug discovery. Greater efficiency. Artificial intelligence (ai) is generating excitement and hyperbole everywhere, but in the field of health care it has the potential to be transformational. In Europe analysts predict that deploying ai could save hundreds of thousands of lives each year; in America, they say, it could also save money, shaving $200bn-360bn from overall annual medical spending, now $4.5trn a year (or 17% of gdp). From smart stethoscopes and robot surgeons to the analysis of large data sets or the ability to chat to a medical ai with a human face, opportunities abound.