Japan’s population has gotten so old that diaper manufacturers are selling more adult diapers for incontinent seniors than they are baby diapers. According to Bloomberg:
This is because Japan’s population is getting older and older:Unicharm Corp’s sales of adult diapers in Japan exceeded those for babies for the first time last year.
This is a pronounced trend all over the developed world. As people live longer and as fertility rates fall, there is a proportionately a larger and larger population of elderly retirees being supported by a proportionately smaller and smaller population of young workers paying taxes and interest on debt.
Governments of countries with ageing populations have a few choices. First, they could relax immigration laws so that working-age immigrants can enter the country, work and pay taxes to support the domestic elderly population (Japan has some of the tightest immigration laws in the world). Second, they could change the tax code or legal framework to incentivise a higher birthrate (for instance, tax breaks per child). Third, they could raise the retirement age (or at least provide incentives to keep an ageing population in work).
Another option is to hope for a miracle. But that doesn’t have a history of working out very well.