As birth rates decline in the U.S. and throughout the world, voices from Silicon Valley to the White House are raising concerns about what they say could be the calamitous effects of steep population decline on the economy. The Trump administration has said it is seeking ideas on how to encourage Americans to have more children as the U.S. experiences its lowest total fertility rate in history, down about 25% since 2007. The population collapse narrative hinges on three key misunderstandings. First, it misrepresents what standard fertility measures tell us about childbearing and makes unrealistic assumptions that fertility rates will follow predictable patterns far into the future. Second, it overstates the impact of low birth rates on future population growth and size. Third, it ignores the role of economic policies and labor market shifts in assessing the impacts of low birth rates. Demographers generally gauge births in a population with a measure called the total fertility rate....
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