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Effect of the Drop in Japan's Birthrate

Negative effects
Transformation into an aging society
(aging rate: 23% in 2010 )

Decline in Japanese population


Fewer workers Fewer consumers

Positive effects
Smaller number of children per family

Greater need for social programs

Lower tax revenues

Parents can spend more time and money on each child

Increase in each workers social program contributions


More children have opportunity to grow in emotionally and academically enriched environment

Reduction in social benefits

Less disposable income

Decline in demand for services (education, leisure)

Decline in standard of living


Decline in some workers motivation to work

Fewer sales

Decline in GDP

Sonoda, Moriyama 2011.12.1

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