US Births Fall to Lowest Level in a Generation Amid Pandemic “Baby Bust”

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The latest population update from the CDC shows a falling birth rate continued last year in the US, smashing theories about a lockdown “baby boom” as the number of births in the US fell by 4% in 2020, dropping to the lowest level since 1979. Birth rates dropped across every race, ethnicity and age group and the decline will likely continue in 2021. Job insecurity and fear of contracting the virus while pregnant likely dissuaded Americans from having babies. The declines were steeper in states that were hit the hardest by COVID-19, such as California and New York. The decline in the US is likely to lead to to either risking a blowout in the per-capita level of America’s exploding debt or increasing the inflow of immigrants.
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A little over a week ago, we reported on one of the biggest deflationary threats looming over the global economy: that is, China’s shrinking population, as deaths outpace births for the first time, a trend that demographers believe will only worsen as the impact of China’s one-child policy is felt on its population numbers.

And as Wall Street banks and America’s largest corporations complain about growing inflationary pressures in their sell-side research and earnings calls, the latest population update from the CDC has just confirmed that the deflationary trend of a falling birth rate continued last year in the US. In fact, one could argue this trend has been supercharged by the pandemic, thwarting theories about a lockdown “baby boom” as the number of births in the US fell by 4% in 2020, dropping to the lowest level since 1979.

Put another way: thanks to the pandemic, US birth rates have fallen to their lowest level in a generation.

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