The elephant in the room I don&#x27;t hear people discussing is the impending spectre of deflation. If the labor supply diminishes what happens to aggregate demand? Judging from the example of Japan, demands implodes as fewer people buy goods and services because they aren&#x27;t working! This deflates the currency and pushes the economy in recession.<p>Most of the developed world is sloughing off huge portions of its working populations. For example, Italy is set to halve its workforce in the next decade. There are huge economic, social, and political ramifications.