When population is increasing you get bigger and bigger workforce and also more and more consumers.
When it is decreasing your workforce not only get smaller, but get smaller faster than the older population. And in total you get less consumers too.
So in a growing population situation, you can take loans with high interest rate and open business knowing you will have cheap labor, thanks to all new young people becoming adults, and over time lots of new consumers, so your business has guaranteed growth.
But if your population is declining, labor become expensive as each year there are less young people and less workers in total, while total demand also gets smaller but not fast enough. So taking a high interest loan is stupid idea, you have guaranteed high costs, and less sales long term, thus your business profits will never be bigger than the interest and you will eventually go bankrupt.
When it is decreasing your workforce not only get smaller, but get smaller faster than the older population. And in total you get less consumers too.
So in a growing population situation, you can take loans with high interest rate and open business knowing you will have cheap labor, thanks to all new young people becoming adults, and over time lots of new consumers, so your business has guaranteed growth.
But if your population is declining, labor become expensive as each year there are less young people and less workers in total, while total demand also gets smaller but not fast enough. So taking a high interest loan is stupid idea, you have guaranteed high costs, and less sales long term, thus your business profits will never be bigger than the interest and you will eventually go bankrupt.