February 27 2024- Millennials are having fewer children compared to previous generations, posing a potential long-term economic challenge for the United States. The declining birthrate among millennials could reduce economic growth by 1-2 percentage points per year, impacting the economy for over a decade. Some child-free millennials are utilizing the financial resources that would have been spent on childcare to indulge in luxury items and experiences popular among DINKs (Double Income, No Kids) such as lavish vacations and flashy boats. However, economists warn that this spending trend won’t be sufficient to counterbalance the economic consequences of a shrinking population, particularly as the U.S. birthrate has sharply declined by 53% since 1960, with just 11.1 births per 1,000 people recorded in 2022.
Millennials having fewer kids could be a drag on the economy for the next decade
Updated on February 27, 2024