Fed Cuts and a Shrinking Nation: How Policy and Demographics Shape Tomorrow’s Economy

This week on The Personal Wealth Coach, Jake unpacks a rare moment of drama at the Federal Reserve—the first split vote in years. Why did some members push for a bigger rate cut while others wanted no change at all? And why did rates drop even though inflation is still above target? We’ll dig into the politics creeping into monetary policy, the surprising role of AI in skewing job numbers, and what these shifts mean for the economy. If you’ve ever wondered why economists fear deflation more than inflation or why the Fed’s two mandates don’t include “making the economy grow,” this episode connects the dots in a way that’s both insightful and entertaining.

But that’s just the beginning. Jake takes us on a fascinating journey through demographics, exploring America’s baby shortage and its ripple effects on labor markets, real estate, and global influence. From historical parallels with Viking-era Scandinavia to modern examples like Japan and Germany, you’ll learn why shrinking populations aren’t always bad news and why they might even make individuals wealthier. Along the way, we’ll tackle questions about per capita GDP, policy experiments to boost birth rates, and what a declining population means for housing prices and urban infrastructure. If you like economics served with humor, history, and big-picture thinking, this episode is a must-listen.

This episode was recorded on December 12th, 2025.

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** The information provided in this episode is for educational purposes only and should not be considered investment advice. We are “The Personal Wealth Coach,” which is also the name of an SEC-registered investment advisory firm. However, being registered with the SEC does not authorize us to provide investment advice. Investment advice should be personalized, offered in a private setting, and be in the best interests of the individual as a fiduciary. If we make any fraudulent statements, you should report them to the SEC. The information presented in this educational episode has been obtained from sources that we deem to be reliable, but we make no warranty or guarantee as to the completeness or accuracy of said information.