Australia is enjoying a baby boom. Why?

In what he says below Bernard Salt tries desperately to avoid giving credit to the policies of Australia's previous conservative government. Salt says the boom is mostly due to prosperity. But the birthrate rise did not coincide with any obvious leap in prosperity, even allowing for some lags. But the big leap did coincide with the introduction of monetary rewards for having babies. So I am inclined to think that the rise is almost entirely due to the Howard/Costello baby bonus payments and that Rudd's likely scrapping of the payments will largely end the baby boom


Big news during the week: Australia is in the grip of a baby boom. New figures confirm that 285,000 babies were born during 2007 - up 19,000 over the previous 12 months, and up 50,000 from the number recorded in 2001. Australia's fertility rate now stands at 1.93 births per woman. Japan, for example, can manage only a paltry 1.1. The yen might be rising against the Aussie dollar but we can still beat the Japanese at breeding.

Babies are everywhere. But why? During the Great Depression the birth rate plummeted. People do not breed when they are uncertain about the future. But this also means that during times of prosperity, such as the past 18 years, the birth rate rises. Although this increase was far from immediate. It took the whole of the 1990s for Australians to get used to the idea that prosperity was here to stay, for a while at least. As such the birth rate didn't do its hockey-stick up-turn until 2002 - some two years in advance of the baby bonus.



The baby bonus merely accelerated a rising trend, which I think reflected a broader confidence in the future. Australians were already well on their way to "having one for the country" before former treasurer Peter Costello popularised the notion.

There is also the argument that Gen X women who had delayed having children in the 1990s to concentrate on careers suddenly switched priorities at about this time. And to some extent you also have to admit that babies really are infectious. One person has one and before you know it everyone is having a baby. Even celebrities are doing it. Role models such as Nicole Kidman and Cate Blanchett show that motherhood and glamour are not mutually exclusive. (Are you reading this, Kylie?)

Other factors have also contributed. Medical advances in IVF, and especially in the care of later pregnancies, have given older women the confidence to have children.

A firm and rising birth rate is a federal treasurer's dream. After all, this is an investment in the taxpayer population base in the late 2020s. (A rising tax base makes politicians look good economic managers.) Although it must be said that a rising birth rate can also place pressure on the labour market since more women come out of the workforce to have children, adding to the immediate skills shortage.

But the future of the current baby boom must be questioned with the likely onset of recession in 2009. The figures released this week relate to births in 2007. This time next year the figures will reflect the 2008 trend. And most babies born in 2008 will have been conceived amid the euphoria of prosperity but will be born into a period of uncertainty. Oddly enough the fluctuation of the birth rate over the next two years will be one measure of how seriously Australians regard the current economic crisis.

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Posted by John Ray. For a daily critique of Leftist activities, see DISSECTING LEFTISM. For a daily survey of Australian politics, see AUSTRALIAN POLITICS Also, don't forget your roundup of Obama news and commentary at OBAMA WATCH (2). Email me (John Ray) here

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