The long-term risk of slowing population growth "poses particular economic challenges," said David Kelly, chief global strategist with JPMorgan Funds, in a recent report. He is concerned that policemen are not addressing the problem, which can damage the market, especially if some of President Trump's proposed "merit-based immigration" plans and increased border security are adopted.
Kelly said the combination of retirees and lack of working age Americans creates a problem that "is particularly difficult for the economy." He added that this trend should "continue through the 2020s".
Therefore, Kelly recommends that the United States "probably have a serious call to temporarily increase, rather than reduce immigration, at least when the baby boom goes to retirement."
"This would allow us to supply the economy with additional workers to match the inevitably rising number of followers," he said.
Slimming American Growth Likely as Population Age
Kelly noted that there are many other issues that the US must contend with because of these demographic changes ̵[ads1]1; another reason why the government should work to reduce both trade barriers and the level of the dollar to help US companies gain access to ever-expanding markets abroad. "