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Wednesday, June 26, 2013

Portugal's birthrate plummeting, a sign of more economic trouble ahead


By Anthony Faiola, Washington Post, June 23, 2013

LISBON—For an enterprise in the business of welcoming life, the birthing ward in Portugal’s largest maternity hospital is eerily quiet. On a recent morning, not a single expectant father nervously paced the orange laminated floors. Unhurried nurses pass rows of darkened rooms with empty beds, busying themselves with paperwork and a mere three women in labor.

Elsewhere in the hospital, signs of Europe’s crisis within a crisis are everywhere. Serving a country that was battling a low birthrate even before the region’s economy fell off a cliff, Alfredo da Costa Maternity Hospital delivered about 7,000 babies a year until recently. But with economic uncertainty causing young couples to rethink family plans or leave these shores for other countries, the number of births crashed last year to 4,500, leading the hospital to mothball an entire wing and slash 20 percent of the staff.

The recent fall in births across Portugal—to 89,841 babies in 2012, a 14 percent drop since 2008—has been so acute that the national government is moving to close a slew of maternity wards nationwide. In an increasingly childless country, 239 schools are closing this year and sales of products such as baby diapers and children’s shampoos are plummeting.

At the same time, in the fast-graying interior, gas stations and motels are being converted into nursing homes even as stores selling toys and baby clothes shut their doors. Here in Lisbon, Alfredo da Costa—founded in 1932 when this once-great maritime nation still commanded a global empire—is on the chopping block, set for closure this year.

“We used to hear the best kind of cries in these halls, of babies,” said Teresa Tome, Alfredo da Costa’s head pediatrician, as she strode down the quiet birthing ward. She later added, “The recent decrease in births has been dramatic. This is because of the economic crisis, all the unemployment, all the uncertainty about the future. It is making a bad problem for the country worse.”

Portugal is at the forefront of Europe’s latest baby bust, one that is shorting the fuse on a time bomb of social costs in some of the world’s most rapidly aging societies.

As in many corners of the industrialized world, Europe has faced a gradual decline in birthrates since the 1960s. But in a number of the region’s hardest-hit countries, a modest rebound during the 2000s—when European governments welcomed immigrants and rolled out cash benefits for young couples starting families—has now gone into reverse.

Birthrates are falling again in several nations that are confronting massive unemployment, including Portugal, Spain, Greece, Ireland and Cyprus. The baby shortage, economists say, is set to pile on the woe for a swath of the continent that may already be facing a decade or more of economic fallout from the debt crisis that started in 2009.

By 2030, the retired population in Portugal, for instance, is expected to surge by 27.4 percent, with those older than 65 predicted to make up nearly one in every four residents. With fewer future workers and taxpayers being born, however, the Portuguese are confronting what could be an accelerated fiscal reckoning to provide for their aging population. Portugal is ahead of other nations in Europe in planning for those explosive costs. But some government officials here concede that far deeper cuts—as well as a push toward a united social security system within the European Union—may be needed to cope with what is turning out to be a worse-than-expected demographic crisis.

The diminishing number of young Portuguese could lead to a vacuum of dynamism and innovation in the years ahead, signaling what could be a long-term decline in the fortunes of nations in a region harboring some of the United States’ largest trading partners and closest political allies.

The U.S. birthrate has also come down sharply since the 1960s. But the United States is projected to witness a generous influx of immigrants in the years ahead while also maintaining a more robust birthrate than those European nations hit the hardest.

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