A note from Morgan Stanley Research last week took an in-depth look at the implications of the global demographic changes over the next few decades. It’s a fascinating read. Duncan Weldon and Mike Bird have already covered the paper’s conclusion about inequality, which is essentially that proportionately fewer people of working age will raise the price of labour and offset the increase in inequality that Tomas Piketty predicts. I’ll leave that there for now because the note contains lots of other stuff which is worth a mention.
It starts with the demographic sweet spot, the point at which birth rates fall but the proportion of old people is yet to rise. Therefore, the proportion of old and young dependents falls while the proportion of the working age population rises, so the dependency ratio is at its lowest. The western economies went through this phase in the late twentieth century and many of the…
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Utopia, you are standing in it! 
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