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Chapter 23: Problem 12

(Related to the Apply the Concept on page 789) In an opinion column in the Wall Street Journal, Purdue University President Mitchell Daniels wrote that "today's 20 - and 30-year-olds are delaying marriage and delaying childbearing, both unhelpful trends from an economic and social standpoint." Why might young people be delaying marriage and childbearing? Why would this trend be unhelpful from an economic point of view? Is the trend possibly connected with the slow recovery from the \(2007-2009\) recession? Briefly explain.

Short Answer

Expert verified
Young people might delay marriage and childbearing due to socio-economic and cultural factors such as rise in higher education, career opportunities, changing norms and increased living costs. Economically, it might lead to reduced consumer spending and an aging population, which are unhelpful. Additionally, the financial instability brought on by the 2007-2009 recession could be a contributing factor to this trend.

Step by step solution

01

Identify Potential Reasons for Delaying Marriage and Childbearing

Consider the socio-economic and cultural trends. The rise in higher education and career opportunities, changing social norms, increased living costs, etc. could be reason why young people are delaying these life milestones.
02

Analyze Total Economic Impact

Analyze why this trend might be unhelpful from an economic standpoint. Delaying marriage and childbearing could result in a decrease in consumer spending, the key driver of any economy. Also, it could lead to an aging population which places a heavier burden on social security and healthcare systems.
03

Identify Possible Connection with Recession

Consider if there’s a potential connection between this trend and the slow recovery from the 2007-2009 recession. Many young adults faced losses in jobs, wealth, and financial stability due to the recesion and that could possibly have led them to delay marriage and childbearing.

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Most popular questions from this chapter

(Related to the Chapter Opener on page 776) Suppose that Intel is forecasting demand for its computer chips during the next year. How will the forecast be affected by each of the following? a. A survey shows a sharp rise in consumer confidence that income growth will be increasing. b. Real interest rates are expected to increase. c. The value of the U.S. dollar is expected to increase in exchange for foreign currencies. d. Planned investment spending in the economy is expected to decrease.

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