> The Western world decided to shift from a growth system, where women bear and raise children and the able bodied population slowly increases, to a system where the women enter the work force and children are few in number.
I will try to give a greater context than what a reading of actuary tables might give a young insurance agent. The roots of the current condition are far deeper than any single social revolution of any generation.
Yes, women entering the work force had an effect of natural decline in population growth. They were a sort of reserve capacity. Yes, this eventually will have a depressing effect on the economy. We still have some more reserve capacity, namely, expanding the work years of the population in reasonable ways by creating new opportunities for the elderly to be productive and remain engaged in society and be dependent for fewer years. After exhausting that last bit of reserve, we will perhaps truly stagnate.
However, relying on population growth is no longer sustainable. The human population has not slowly increased in the last few centuries, it had *exploded*. UK, for instance, increased its population by 2x in 1500 years (0-1500) and 20x in the 500 years after. While I am not suggesting that it should implode, it must go into a decline for centuries to come if we expect to thrive on this planet, long term. The environmental pressure and resource drainage initiated by your generation, and continued by ours, is spectacular. The difference between the environmental footprint of poor rural nations and the most prosperous nations today is 100-150x.
The western (and especially US) experience of abundance since WWII is also anomalous. It relied on the huge productivity differentials from the rest of the world. Now the world is slowly equalizing as the other populations also tap into their reserve capacities. So once again, to expect beyond the prosperity of your generation, baring another fundamental technology revolution, is not reasonable.
We will stagnate. But in context of what humanity went through, through our history (wars, disease, famine, ignorance), current "stagnation", which may last for centuries, is not that horrible, just mildly annoying. So we won't have even larger houses, trinkets and whatever that we don't really need. Is it really that natural or sustainable for everyone to want vacations on the other side of the planet? We still will lead relatively secure, healthy & engaged lives and that's enough.
The world was stagnant for much of its history. The growth spurt, the adolescence of mankind, from the industrial revolution onward, will have to slow at some point. The economists are simply wrong to target growth to the exclusion or detriment of everything else (in human growth terms - its wishing for Gigantism or taking steroids: ultimately the piper needs to be paid). It is OK for humans to settle down at this standard of living. We can think of growth once again, after it is viable to leave this planet. Now, more than ever, it is important for humanity to understand satisfaction.