ECON 224(S) Baby Booms and Busts and How They Shape Our Society

Fluctuations in age structure like the U.S. `Baby Boom' can have dramatic effects on the economy, both in terms of the rate of growth of GDP and productivity, and the distribution of economic welfare. Young men's wages relative to those of older men fell by 25-30% over the last thirty years, almost entirely as a result of these population changes. Savings, interest and inflation rates are also affected - and in turn, the many gyrations of the stock market. We will examine all of these many effects of population change on the economy, and then look at what are termed "demographic adjustments" - the many changes people have made in their own lives, in response to such dramatic shifts in the economy. These include changes in college enrollment rates, female labor force participation, marriage and fertility rates, social attitudes, the status of women, relations between generations, and the nature of families. This class will supplement the basic tools learned in introductory economics with some elementary demographic principles to examine demographic swings and their profound effects on societies. We will explore these and other issues principally through the example of the post-war baby boom and bust in the U.S., but we'll also examine the 1920s Great Depression and recent experiences like the southeast Asian nations' "currency crises" to identify links with their earlier "demographic transitions." Students will be expected to produce a research paper, or to participate in an independent project such as the administration and evaluation of a campus-wide survey on a topic of their choice. Other course requirements are class attendance and participation, and two midterm exams. Prerequisite: Economics 101.

Hour: MACUNOVICH