
South Korea’s World-Lowest Fertility Rate Set to Fall Further
Low fertility threatens to undermine South Korea’s economic future by shrinking its workforce and slowing consumption.
Sometimes it is illustrating to demonstrate what a statistic like this actually means with basic math.
A TFR of 0.7 is equivalent to saying that for every 20 people, the next generation will have only 7.
If you start out with a population of 800 in the first generation, the next one will have 280, the third one will have 98, and the fourth will have 34. In other words, there would be 23x as many people in the oldest cohort as there are in the youngest.
At TFR 0.6: 800 → 240 → 72 → 21.
At TFR 0.5: 800 → 200 → 50 → 12.
An additional problem is that these rates are not constant either but also declining regularly, seemingly without end.
Over time, more people drop out of the workforce and draw on the pension system. This creates an additional financial burden on the fertile and working-age population which either manifests through taxes, increases in the cost of living, or otherwise being shut out from the ability to save and build lasting wealth. This pushes TFR lower and lower, approaching zero. It will become the world's biggest death spiral