Aging Population: A Global Trend
The world over the population is aging, in Asia and Europe the aging population makes up a large percentage of the total population. There has never been anything like it in previous generations. Even two generations ago the aging population was not as big as it is now.
It can hardly come as a surprise with the advances in medicine and the longer life spans for men and women of today. These changes in medical technology have led to huge impacts on our everyday lives and social policies. It is unlikely that the trend will change or give way to a younger population anytime soon.
Financial Policies
It seems odd to think that an aging population can have such a deep impact on society as a whole but it does. The economy can suffer greatly due to the assumption that older people are more likely to save than to spend. A good example of this is Japan where interest rates have plummeted and to no avail as consumers refuse to spend and keep saving money.
Other sectors of the economy can also suffer due to the aging population and its gradual increase in numbers. Health systems the world over are already over taxed and an ever increasing aging population will only make whatever problems the health care system has even worse. Costs are going to rise as well as health insurance costs. This may mean that some people will no longer be able to afford health care when they get to a certain age.
Governments will also have to ask themselves some tough questions when faced with the demands that an aging population brings. As more people retire and stop contributing to taxes what does the government do to offset rising costs in the social security and health care systems. Does it mean unpopular tax hikes to compensate for the loss of revenue? Rising costs mean that spending has to be cut elsewhere. One of the first places that the government will start cutting funds is the education sector.
As you can see the issues that are raised by an aging population are important and need our full attention. We need to pay close attention to the policies that governments intend to implement for the sake of ourselves and for our children. Government policies need to be long term yet no sacrifice the well being of the people at present. It's a tough balancing act but there has to be a way to reach a solution that at least satisfies some of these concerns.
