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" Either way 3.1 is FAR above the replacement rate for a country that already had it's resources strained before a harsh drought in 2011."
Strained resources and meager life tends to favour more children-making over not having childrens.
"A population decline really isn't as scary as people make it out to be."
Of course it is. Atleast with our current economic systems. It's not that Japan has a declining population, it is that it has a old population. Which means less people in jobs and more people in retirements, which means more budget deficiets and loaning. Eventually the bubble will burst, Japan is already having issues breaking even. And you know, economies need to grow.
To be crass, it wouldn't be a problem if a lot of Japanese old people died and the overall population went down. However the problem is that it's the young people that are getting fewer.
Immigration counteracts this to the extent that it's mostly people in the workable age whom are refugees, they are faster to educate than children and they will likley bring more childrens.
As for we need to reduce the total population on earth.
-Maybe we need another economic system. The current one focusing soley on growth for growth's sake.