.- President of the Vatican bank Ettore Gotti Tedeschi said July 21 that the best solution to the current economic crisis is for families to have more children.
Developed nations âmust invest in the family and in children in order to generate rapid economic growth,â Tedeschi said in an editorial in the Vatican paper L'Osservatore Romano.
The Vatican bank president explained that because there aren't enough young people in society to support the increasing amount of elderly, population aging âcan be considered the true origin of the current economic crisis.â
He said that in Western countries, such as the U.S. and Europe in particular, the percentage of the population over 60 years old continues to grow considerably. The âcost of this tendency is not sustainable,â he added.
Steven Mosher, the head of the Population Research Institute based in Virginia, agreed with the Vatican official's take.
âLarger families are absolutely the answer to the crisis,â he told CNA on July 21.
âIf Americans averaged three children, the Social Security Trust Fund would be solvent forever, without recourse to raising taxes, postponing the age at retirement, or reducing benefits,â Mosher said.
âAmerica would possess a more robust economy and our standard of living would be higher.â
Tedeschi warned in his editorial that within the next decade, the ever-increasing percentage of people who retire will become more of a fixed cost that will be impossible to absorb and sustain by younger workers.
âIn addition, increasingly fewer people are entering into the production cycle and when they manage to, they do so very slowly,â he said. âNot to mention the factor of the changing concept of employment, which had been stable until some time ago.â
Tedeschi also noted that the economic cycle of production and savings is in âdecline and destined to crumbleâ because of the drastic reduction in income.
Faced with this reality, he said, it is more necessary now than ever âto have the courage to address the theme of births and aging of the population.â
âTo ignore it is dangerous and it has become unavoidable to define a strategy to concretely support families in their natural vocation to have children.â
âOnly in this way can real economic recovery be triggered,â the bank president emphasized.
Tedeschi said that a two-income family today earns less than the same family earned 30 years ago with only one income. This, he explained, is the consequence of growing taxes on the GDP in developed countries, which are intended to absorb the consequences of aging due to decreased births.
âIn the end,â he said, ânature itself teaches us that if a man and a woman do not generate children it is difficult that someone takes care of them when they age. The State can try, but at a very high cost.â
Mosher added that âhuman beings are the ultimate resource,â and one âthat you absolutely cannot do without, and for which there is no substitute.â