It's the Demographics (median age), Stupid!
The median what ... ? I know you might think that I have now completely lost it in my obsession with demographics and macroeconomics but bear with me; you won't regret it. So what is this all about then? Well, I have said many times in my postings about the Eurozone economy and the Japanese ditto. Any economic analysis which does not take into account the effects and realities of the demographic factor is not worth much in the end. I don't say this lightly and if I at some point is proven wrong? Well I shall be the first to concede then, but so far I stand fast.
In essence demographics can be operationalized in numerous different ways but in order to grind down to the core we can speak of this as an issue of ageing driven by declining fertility (the tempo effect (birth postponement) and the quantum effect (quality of children above quantity of children)), and increasing life expectancy. Taking it a step further we can also make it operational through the median age of society.