Demographic Winter


The film, Demographic Winter, is a documentary about the decline in the birth rate of the U.S. population and how it relates to the decline in the purchasing power of that population. The review explains what Demographic Winter is, how it relates to the recent recession, and some of the implications. It also presents a solution to the problem.

  1. Since we live in a consumer driven society, in your opinion what consequences will the
    facts presented in Demographic WinterPt1 have on consumption of consumer goods in
    the USA?

The facts presented in the film implies that the United States and other industrialized
global economies will have declining birth rates. The economic problem is declining the
birth rates at an alarming rate, hence the anticipated downturn of consumption due to
recession in the American economy. The younger generation will however continue to be
overburdened by the order and larger population or generations that will depend on their
support, hence stagnant cost social status. With shrinking workforces, increased
expenditure burden and decreasing population, the American consumption of goods will
even go lower, hence inconveniencing industries and forcing cutback of some.

Decreasing population cuts the labor force and hinders productivity progress, hence
eroding the domestic market consumption. Therefore, the film’s recorded facts illustrate
that the future of the American domestic consumption will shrink and have a negative
impact on the rate of incomes, hence a decrease in the domestic income. Slower
economic growth is therefore imminent. Social security expenses for the older population
will expand as they shrink.

Labor-saving investment will continue to expand, with importation of labor and skills to sustain the productivity of the economy, hence a higher cost on commodities due to the domestic labor shortage (Amadeo, 2020). More families will suffer high burdens of consumption especially with the increasing trends of divorce, women’s revolution and sexual revolution that are more focused on individuals than others, hence higher costs of sustaining families especially in single-parent families. Therefore, the film suggests that consumption will lower due to decreased disposable
income, higher income per capita and income inequality causing high living wages and
household debts.

The consumer confidence will fall and subsequently shrink their spending capacity, hence low local consumption (Amadeo, 2020). The United States fertility rate is expected to significantly fall in future. The general pattern of families spending on investments in every child will lead to a questionable fertility decline. Falling population also leads to slower growth in the living standards, and hence a possible vicious consumption cycle and a downward spiral in population consumption
rates (Harding, 2020).

2. In your opinion based on facts expressed in Demographic Winter Pt1, what issue does
this film raise about the US housing market?

The housing market will shrink due to decreasing population, leaving most residential places unoccupied. The house market will therefore lower the costs of the houses to attract the low population into the lowly demanded apartments and houses. The anticipated population decline will therefore lead in reduced housing demand. Furthermore, with a decreased income due to high expenses on care, the housing market will decline. Modernization of the housing market will increase as more investors seek to attract renters in a decreasing economy and population (Wang et al. 2015). However, with the new family roles, women revolution, marriage divorces and sexual revolution, more households may be witnessed as more single parenthood families increase, therefore a significant balance in the demand for housing.

The community GDP declining implies lower spending amounts, and hence the affordable housing options are inevitable. The price of housing will therefore be affected by the population, due to lower income, large expense burdens, the interest rates and the wealth of the consumers. The ageing population will however not restrain the demand for housing in the United States,
especially with the urbanization patterns in the population (Wang et al., 2015). The
housing market will shrink as there will be few investments on mortgage, fewer home
purchases, hence a healthy economy with lower costs for rental and for sale housing.

With the housing market intertwined with all other industries in the United States, a
shrink in economy and population means that the housing market will also decline, and
demand falling, hence higher supply and lower pricing to attract more consumers. The
more the political involvement in consumerism, means the more the prices of the goods
and services will rise to cater for the expenses of research and intervention in consumer

3. Please provide your opinion on how the facts presented in this film will affect
consumerism in your lifetime. For example, what will happen politically?

The film presents that there may be an economic recession due to lower population,
hence lower productivity from a decreased labor force. Consumerism will decrease due to
a declining economy, with a collaboration between producers and consumers to express
concern over the consumer wellbeing, especially as a positive move to increase the
domestic consumption. Consumerism fuels economic development and growth, and
therefore with the decreasing population, and with lower living standards of people,
consumerism may shrink (Harding, 2020).

When people spend more on goods and services, they dictate the economy through consumerism, however, the film presents facts and state of declining population which will even get higher in future, hence lower consumer protection, deteriorating the quality of goods produced for the consumer market. Lower productivity due to reduced labor force from a declining population
implies that the innovative and creative nature of consumerism will fall, and hence the
living standards, access to healthy products produced will be diminished (Amadeo,

The experience is that consumerism may not be vibrant as it has been, thus lower pressure for producers and manufacturers, which means substandard goods may be on the rise. In my perspective, the political system will establish policies to protect the consumers from substandard goods and overexploitation, as the strain of life hardens the consumer involvement in the protection of consumers.


From the film Demographic Winter: A New Reality, the American future in the economy
and demographics is a complex scenario that will affect the incomes, other markets and
the national sustainability. Financial wellbeing depends on the productivity of a
population, and the capacity to spend, save and invest. The decreasing population trend
will cause an imbalance between productivity and consumption, hence the involvement
of government in the market through consumerism and policy making to sustain the
economy. Furthermore, the housing market will decline as people have less to spend on,
and hence improved social services and infrastructure to attract more people among the
decreased population.

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