Showing posts with label Ageing Population. Show all posts
Showing posts with label Ageing Population. Show all posts

Sunday, March 10, 2024

Do We Need a Bigger Population? (1945)

From the March 1945 issue of the Socialist Standard

A revolution in ideas regarding population has taken place since 1798, when Malthus wrote his coldblooded “Essay on Principles of Population.” It had a favourable reception from the ruling class of the day, but the passing of time has shown his ideas to be fallacious, and they have been superseded by ideas which are quite contrary to his conclusions. His doctrine, which declared that there is a universal tendency for population to outrun the means of subsistence, expressed the ignorance of his time.

The only solution Malthus saw to the poverty of his day was to get a decrease in the population and so raise the standard of living among the remainder. He does not seem to have been quite so heartless as some of his contemporaries, who regarded the lower class as a variety of animals requiring even less care than domestic animals. Commenting on one of them, the notorious Count Rumford, who had concocted recipes for cheap soups as a suitable diet for the common people, Malthus writes:
“They (the soups) are excellent inventions for the public institutions and as occasional resources; but if they were once universally adopted by the poor, it would be impossible to prevent the price of labour from being regulated by them . . . perhaps some cold politician might propose to adopt the system with a view of underselling the foreigners in the markets of Europe. … I really cannot conceive anything much more detestable than the idea of knowingly condemning the labourers of this country to the rags and wretched cabins of Ireland, for the purpose of selling a few more broadcloths and calicoes.” (Essay on the Principles of Population, page 232-233.)
So Malthus was not completely unaware of the trend of wages, although he knew nothing of surplus value !

The housing problem was then, as always, acute among the poor, but Malthus saw in it a weapon for keeping down the population.
“One of the most salutary and least pernicious checks to the frequency of early marriages in this is the difficulty of procuring a cottage, and the laudable habits which prompt a labourer rather to defer his marriage some years in the expectation of a vacancy, than to content himself with a wretched mud cabin like those in Ireland.” (Ibid, page 250.)
Portal houses are now to be produced for precisely the opposite reason.

As Socialists profiting by the work of Karl Marx, we realise that workers are short of the means of life, not because production falls short of demand, but because the present anarchy of production is concerned merely with profit-making and not with supplying people’s needs the latter being incidental.

Turning to recent writers on population, we find them arguing in the opposite direction to Malthus. The writers and investigators on the subject—Glass, Carr Saunders of the Eugenic Society, Titmuss, Charles and Ginsberg, to mention just a few—are full of woe and gloomy prognostications. They foresee something like extinction for the Western nations in 200 years time, and for the near future they predict more old people in bathchairs than infants in prams.

They relate it to economics too. D. V. Glass states :
“The population will suffer from a much higher degree of invalidity and the burden of State health insurance will be greater. So, too, will the relative cost of old age benefits. On the other hand, this large section of aged and therefore unemployed people will have to be supported by a relatively much smaller proportion of able-bodied persons. That is, proportionately the amount of taxation per head will rise, while the ability to bear it will fall. Moreover, the position of industry is likely to be more difficult. In the last century the industrial system recovered fairly easily from the depressions through which it passed, and one of the major factors in this case of recovery was undoubtedly the growth of the population. An increase in the numbers of people meant an increase in the demand for the products of industry, and with it the slump period of the trade cycle was shortened. The much reduced rate of the increase of the population of the world since the war has no doubt helped to intensify and prolong the economic crisis, and if population actually falls in the future, the effect of the trade cycle upon economic prosperity is likely to be much more severe.” (“The Struggle for Population,” pages 14-15.)
To a Socialist such fears appear fantastic; to the orthodox economist, however, they are very real : immersed in a vain effort to reform and prevent the worst trends of capitalism, the real solution escapes them. Under Socialism people would not deny themselves the pleasures of children and the play of their normal instincts. Generally speaking, contraception is practised because would-be parents either cannot afford children or wish to do better for the ones they have. The working class, possessing only their power to labour, possessing no resources of wealth on which they can draw in bad times, find the inclination is not strong to procreate merely to create a reserve army of unemployed for the capitalist to draw upon in boom periods and that will languish on the dole during slumps. The worker is not interested in falling populations, but he is well aware that after successful strikes or negotiations for a rise in wages, a usual practice in the times called peace is to turn off many workers and instal bigger and better machines to do their work, and thus reduce the wages bill.

In an effort to stem the falling birth rate (rising temporarily in the present war), the Government of this country are about to institute some form of family allowances. As an inducement to parenthood it does not bear the stamp of originality. Family allowances were first given in France in 1854 but did not become general until 1916, when rising prices were making it increasingly difficult for the parents of children to maintain their standard of living. It was resisted by the trade unions, who claimed that it would reduce real wages. Until 1932, when the Equalisation Fund was set up, the scheme was a voluntary one run on contributions obtained only from employers. We dismiss at once any suggestion that it might be due to their innate generosity or love of little children (for it is not characteristic of employers as a class), and look for a more likely reason. Possibly the following quote fills the bill:
“Among other factors which may have influenced employers is the one given by the Director of the Fund for the Stephanoise Region. He believes that the granting of allowances has effectively withdrawn the family man from the ‘class struggle.’ If this is true, the employers had very strong grounds for extending the system.” (D. V. Glass, “The Struggle for Population,” page 52.)
The Fascist powers, in their rise to domination, in Italy and Germany, made a determined attempt to increase the birth rate. The Nazis made loans free of interest to young couples, cancelling repayments at the birth of each child. Promotion was also given to fathers of families, together with opportunities to obtain the best houses or flats.

The Italian plan, though on the same principle, had different features. A bachelor tax was levied, and financial burdens decreased in large families, by means of tax exemptions. The large family, however, consisted of seven children among State employees and ten children among other workers! In both countries improvements were made in maternity and child welfare.

Methods employed in Russia are akin to the Fascist powers in this as in other matters. A 50 per cent. increase has been made in maternity benefit and endowments given to mothers of six or more children, whilst the mother of ten qualifies for a medal. L. Ginsberg, in a Fabian pamphlet, “Parenthood and Poverty”, thinks, in the Fabian manner, that it is merely an extension of the social services and an attempt to raise the standard of living; we prefer to view them in a more realist manner. The anti-abortion law of 1936 marked the commencement of a new policy regarding population which finds expression in the more recent changes.

A method used by these countries is discouragement of birth control propaganda and sale of appliances. In Italy the latter became illegal, but was avoided in a truly commercial manner by selling certain articles under the heading of preventatives of disease.

Individual capitalists are not concerned with the state of the population in a hundred years’ time; they want their profits now.

Sweden, claimed as one of the most democratic countries, has adopted a saner method. Deciding that wanted children thrive best, birth control information is disseminated, whilst granting allowances and improving maternity and child welfare.

Most Western countries now grant allowances for children. These include Spain, Hungary, Holland and Belgium. So also do Australia and New Zealand. The Baltic countries and Switzerland, Austria and Bulgaria grant them to State employees.

The latter grants seem to indicate the desire of these countries to keep State servants loyal to the government and to induce them to refrain from following their class aspirations. We find Britain only recently tackling her problem. The proposed allowance for each child (after the first) is to be 5s. and not the 8s. suggested by Beveridge.

From Malthus to his modern counterparts, no solution to the so-called population problem along their lines can be effective!. Malthus advised continence among the “lower orders,” the moderns advise the opposite, and neither solves any real problems for the working class.

In a world torn and bleeding by a ruthless and brutal war, it is sheer humbug, cant and hypocrisy to talk of a population problem. Capitalism, which dooms millions to hunger in a world of plenty, wastes the lives of millions in useless toil, and periodically sends millions to their death in futile wars in every part of the globe, will appeal in vain to the working class to solve capitalism’s future population problems. There can be only one answer to such appeals-— a determined purpose to change the basis of society on the part of the workers, and to win a world with natural resources so vast and with productive forces so great that the needs of all can and will be supplied. Intelligent men and women will not then deny themselves the joys that children can give, and no special incentives need be offered to induce unwilling people to procreate. Family allowances and medals are devices of a ruling class endeavouring to solve its particular problems.

Workers should cease looking to family allowances and social services for the solution to their present troubles. Why ask for paltry sums when the world is yours to win ?
W. P.

Saturday, December 23, 2023

Cooking the Books: Pensioned Off (2005)

The Cooking the Books column from the December 2005 issue of the Socialist Standard

According to the government and the capitalist media, there is a “pensions crisis” in that, given the growing proportion of retired people in the population, the capitalist class is not going to be able to afford to maintain pensioners at the same level as existing ones. Therefore, the argument goes, people must set aside more of their current income to purchase future pension rights. And they must retire later.

It seems to make sense. If there are more retired people compared to those at work, surely that must mean that those at work have to work more and/or consume less? This would be true but for one thing: it ignores the point that over time productivity increases, even if only fairly slowly. This means that more wealth can be produced by a workforce of the same size, out of which, in theory, both current wages and future pensions can be maintained at the same level as today.

“In theory” because the fact that this could happen is no guarantee that it will. But it does show that the capitalist class can’t plead poverty here. They can afford to maintain pensions at current levels. That this is so was confirmed in a report, The Ageing Population, Pensions and Wealth Creation, released on 31 October by a pro-business think-tank, Tomorrow’s Company. According to the BBC News of that day:
“One of the report’s authors Philip Sadler said there was no ‘ageing crisis’. ‘As a society we can afford to grow old,’ he said. ‘Rising productivity will outweigh any negative influence on living standards from an ageing population.'”
The report asked “how can a working population that is expected to remain around 27 to 28 million create sufficient wealth over the next 35 years to support an additional five million pensioners?” and answers:
“The main factor affecting our ability to afford an ageing population without the erosion of living standards is the impact of rising productivity. More than anything else, rising productivity explains the paradox that ageing societies have simultaneously become wealthier. At a mere 1.75 per  cent productivity growth per year, by 2045, an average British worker will be about twice as productive as today. In other words, a doubling of new value and resources being produced while the number and share of over 64s grows by less than 50 per cent.” 
What is interesting in a report from a pro-business lobby is that it acknowledges that it is the “working population” who are the “wealth creators” rather than the usual guff we get from such groups about entrepreneurs being wealth creators. Wealth can only be created by human beings applying their mental and physical energies to materials that originally came from nature.

But they do write as if there was a direct transfer from the “working population” to the pensioners. In fact, this only happens indirectly, as the wealth is taken from its direct producers, the workers, by the capitalist class and then transferred by them, via the state and pension funds, to pensioners. So pensions come out of profits, not wages. Which is why how to pay for pensions is a problem for the capitalist class. However they solve it, what we get will never be enough to compensate for a lifetime of exploitation.

Wednesday, December 13, 2023

Pathfinders: The Baby Bust (2022)

The Pathfinders Column from the December 2022 issue of the Socialist Standard

The existential crisis of global warming as well as rocketing inequality have made many people start to question the viability of capitalism as never before. But you still hear some dismissing the idea of post-capitalist common ownership with the time-honoured objection that ‘there are too many people.’

There’s sometimes a suspicious whiff of racism or Nazi-style eugenics about this argument, but it’s not hard to see why people might innocently believe it, particularly in the crowded urban environments most people inhabit nowadays, and particularly if they remember China’s infamous one-child policy, and Indira Ghandi’s even more infamous forced sterilisation programme in India. Ever since the 1970s (or indeed Malthus in the 1800s) people have been banging the drum of doom about an impending population catastrophe. It’s been a staple trope of Hollywood movies from Soylent Green (1973) to Avengers Infinity War (2018). And last month, to great fanfare and only 11 years after passing the 7 billion milestone, the world passed the 8 billion mark, with the population still increasing at around 3 people per second, at least according to the population clock at bit.ly/2UKMS7c.

But it’s not rising everywhere. Indeed, it’s not rising almost anywhere. If you look at the 20 largest populations on the clock, India is the only one visibly ticking upwards. China isn’t moving. The USA isn’t moving. Globally, almost all populations outside sub-Saharan Africa are either stable or in decline, with fertility rates generally well below replacement levels. At current rates, China’s population, along with that of Singapore, South Korea, Taiwan and most European countries, is set to halve by 2100. Japan is ‘super-ageing’, with the oldest median age, 48, in history. Latvia is worried that it’s running out of Latvians (bit.ly/3hPBvr0 ). Instead of a baby boom, the future looks more like a baby bust. In July this year the UN downwardly revised its 2019 projection of 11 billion and rising by 2100 to a peak by 2080 and declining by 2100 (bit.ly/3TMMbUx), while other studies suggest a peak by 2070 (bit.ly/3tVZO9D ). One HSBC economist, following the work of two Canadian demographers, is even predicting a peak in 2040, declining to 4 billion by 2100 (bit.ly/3ApdoG2).

What’s happened to overturn the received wisdom of decades, if not centuries? There are lots of reasons, including more women in the labour market choosing to delay parenthood, high housing costs, high childcare costs, and understandable insecurity about the future. But the two main global drivers of falling birth rates are better female education, which leads to better prospects and more independence for women, and female access to contraceptives. Regardless of income, wherever women gain control of their own fertility, the birth rate declines, giving the lie to that old saw about poor people deliberately breeding children as insurance policies for old age. Where these drivers are not present, as in sub-Saharan Muslim countries where girls do not go to school and men don’t allow them to use contraception and won’t use it themselves, you see dramatic population increases.

Capitalist states regard declining populations not with enthusiasm but with alarm, because low birth rates combined with longer lifespans mean a relative reduction in the young workforce and hence a reduction in profits, combined with an increasing burden of ‘economically inactive’ old people who constitute a considerable cost to profits, via government taxation. Immigration would in theory solve the problem but has been made politically toxic, so many countries have instead adopted what are called ‘pro-natalist’ policies, involving financial and other incentives to have more babies. In France they give the woman a medal. In Iran they give the man a promotion at work, or a zero-interest loan (yhoo.it/3TKfPtA). But such state intervention to increase the birth rate would only yield very long-term results, and is anyway thought to be much harder, and more expensive, than intervention to reduce it, because of the need to incentivise young couples to take on the considerable extra financial cost and loss of personal freedoms. In the UK, the Child Poverty Action Group’s November 2022 estimate of the cost of raising a child to age 18 is £160,000 for couples and £200,000 for lone parents (bit.ly/3E8zbCU).

You might suppose that a smaller population would be better for the planet at least. But many environmentalists now realise that population is not the barrier to sustainable living that many imagine (bit.ly/3g8r1CJ). Rather it’s resource usage that makes the difference. One 2020 study of the global farming system concluded that the present food production system could only sustainably feed 3.4 billion people, but that with certain key changes, particularly in reducing meat consumption and food waste, and being smarter about choices of crops, that could be increased to 10 billion (bit.ly/3gfEbO0 ). Overall, resource use is wealth related, with the carbon emissions of the richest 1 percent being more than double the emissions of the poorest 50 percent (bit.ly/3Of1Tqk).

It might upset an anti-abortionist, but it’s axiomatic to a socialist that the only person with the right to say whether or not a woman has a baby is the woman herself. In a socialist society, money and patriarchal power dynamics would not exist to restrict that woman’s ability to determine her own fertility. If the global population fell as a result, which the evidence suggests could well be the case, what would be the result? Not a crisis of care for the old, because care in socialism would be a matter of communal aid, not taxable profits. The world would simply scale down production to suit what was required. And productive work doesn’t require the labour it used to. As a recent Wired podcast pointed out, ‘we can do more today with fewer workers than at any other time in history’. Might the population rise, perhaps because of zero financial costs and because socialism offers a life worth being born into? Possibly, but even socialism couldn’t socialise the child-bearing process, so the physical costs to women would likely be the limiting factor. In either case, if the need for social debate did arise, it would at least be done in the open, without competing sectional or state interests intervening to weaponise it.
Paddy Shannon

Friday, November 17, 2023

Material World: ‘Too old to work, too young to die’ (2020)

The Material World Column from the November 2020 issue of the Socialist Standard

People are living a lot longer which should be good news but not so under capitalism. Ageing populations are viewed as a threat to prosperity, rather than a sign of human achievement and progress.
With a lower fertility rate (see last month’s article), the ageing of the population is inevitable. For the first time in history, the number of people aged 65 years and over will exceed the number of children under 5. With the ‘greying’ of the world’s population, governments are struggling to support the elderly.  As long as women are not willing to return to being baby-breeders to counter-act the trend, by 2030 there will be one billion more older people, accounting for 13 percent of the total population.

 While some of the developed nations are raising the age of retirement, making their old people work for longer, the increased longevity and the growing proportion of elderly are raising serious economic concerns. In particular, population ageing is resulting in growing financial stresses on retirement pensions, health systems and social care programmes. Reluctant to raise taxes on the capitalists, the state attempts to address the mounting costs by largely adjusting benefits, contribution rates, savings plans and raising the age of retirement. But socialists possess a greater vision: that we shouldn’t be aiming to extend the domain of work into old age, but to extend the domain of non-work into young age.

The current pension problems in the advanced capitalist countries will pale into insignificance compared with what is coming for the rest of the world  that has no welfare system, where the ratio of elderly people will rise faster than in the industrialised world, casting vastly more numbers of their old folk into poverty. An indication of the rate of this ‘population ageing’ is the time it takes for the proportion of people over a retirement age of 65 to double from 7 percent of the overall population to 14 percent. In France this process took more than a century. In China, it is projected to take less than a quarter of that time, perhaps just 25 years. In Vietnam ‘population ageing’ is set to rise even faster with the proportion of elderly projected to double over a mere 17-year period.

Centenarians represent a small fraction of the world’s current population of 7.3 billion, about one centenarian out of every 16,000 people. Over the coming decades, however, this rate is expected to increase rapidly and by the close of century is projected to reach one centenarian out of every 425 people. Other studies have been more optimistic about the chances of becoming a centenarian, estimating that more half of the babies in advanced industrialised nations can expect to live 100 years. Bringing more women into the workforce and lengthening the working years of older workers may well not be sufficient to solve the demographic problem. The other alternatives will be to increase productivity either by automation or with more immigration.

Many believe robotics can help a country overcome the handicap of a fast-ageing population and a declining workforce. The source of all unearned income is what Marx called the surplus value produced by workers over and above what they are paid. It is out of this unpaid labour that not only the rich but the whole non-productive superstructure of capitalist society (the armed forces, civil service, legal system, banking) has to be maintained. What allows capitalism to maintain an enormous non-productive sector is its high level of productivity in the productive sector. Pensioners too are maintained out of this surplus. Pensions are a transfer payment from the profits of the capitalists, even if ultimately these profits come from what workers produce. It is the increasing productivity that will determine how well society will be able to support the expected increased proportion of retired people in the population.

The data make the case that there requires a general increase in immigration. Migration can offset many of the adverse effects of an ageing population on the labour market, with the average age of migrants being lower than the host population. Immigration is a sensitive issue in numerous countries. Paradoxically, those countries facing dropping birth rates and increased ageing, are opposed to immigration. In addition to rising public opinion opposing immigration, many governments are tightening border controls, erecting fences and walls, adopting policies to significantly restrict immigration. And it’s not just about the numbers – migrants bring new ideas and a new dynamism to a society’s culture.

The Socialist Standard could fill its pages with articles about the appalling care given to the aged and infirm under capitalism today. Many charities strive to improve conditions for the elderly but ultimately they will fail because they try to reform capitalism instead of changing it. When workers decide to abolish the wages system and produce for human needs instead of profit, then hardship and insecurity in old age could become a memory of capitalism’s barbaric past. Join us and help to build a new system of society where young and old can live out their lives with respect and dignity in a world where the true meaning of community prevails. Socialism will abolish the concept of retirement and fulfil the promise of a world providing all the prerequisites of a good life, regardless of age or physical ability.
ALJO