Its discussion of low birthrates and the declining population of Germany shows no evidence that news of the phenomenon has yet reached the paper. The article implies that a declining German population would be a serious problem. It is not clear why a declining population would be a problem. Other things equal, a smaller population implies higher labor productivity and higher living standards. (It leads to a higher capital to labor ratio, as workers leave relatively low productivity jobs for higher paying, higher productivity jobs.) A smaller population will also impose fewer strains on natural resources and reduce emissions of greenhouse gases. Other things equal, if Germany has 10 percent fewer people, its emissions of greenhouse gases will be 10 percent less. It is understandable that a German nationalist would upset by a declining German population, but it is not clear why anyone else would view it as a problem.
--Dean Baker