There are challenges faces by countries with a large aging population. The concerns are greater when the following generations are significantly smaller is size. A large number of elderly compared to those of working age can cause a strain to resources and the economy. This large group has a great amount of influence in the government due to their disproportionate numbers.
There are diverse reasons that one generation is older than the next one. A higher birth rate in the older generation is the most straightforward cause. Birth rates often increase following a war or other traumatic event that occurs over a period of years. This seems to result in couples having more children than they might otherwise have had.
Another control factor that creates this situation is where a government mandates the number of children that can be born to a couple. The most well known occurrence of this is in China. Couples are instructed to have only one child. There are ramifications for not following this mandate. This means that two people in the older generation have one descendant. This creates a much smaller group of younger people in comparison to their elders.
Social norms have always had an influence on birth rate. In the past a couple might have many children in order to have workers on the farm. There have been times when birth control was more acceptable than others. Birth control is also easier to get a hold of today. Planning the number of children to be in a family is more acceptable than it used to be.
People are also living longer in many developed countries. Medical technology and access to nutrition has helped to created this situation. Lifespans have increased through the development of medical procedures and medications. Diseases that were once always fatal are now more likely to be overcome.
There is lobbying power in being the largest segment of a population. Politicians who are looking for votes will listen more intently to a larger group as opposed to a smaller one. Lobbying groups have been formed by the older population to lobby their democratic governments. They can have an influence on how government funds are spent. Politicians find programs for retired people easy to vote for since they represent a large voting block.
In many countries it is the taxes from current workers that support programs for the older people. These include funds for monthly stipends as well as medical care. When the proportion of workers is far smaller than the size of the older generation they have to support it puts a strain on the system. Taking care of an aging population has an effect on the economy.
There are diverse reasons that one generation is older than the next one. A higher birth rate in the older generation is the most straightforward cause. Birth rates often increase following a war or other traumatic event that occurs over a period of years. This seems to result in couples having more children than they might otherwise have had.
Another control factor that creates this situation is where a government mandates the number of children that can be born to a couple. The most well known occurrence of this is in China. Couples are instructed to have only one child. There are ramifications for not following this mandate. This means that two people in the older generation have one descendant. This creates a much smaller group of younger people in comparison to their elders.
Social norms have always had an influence on birth rate. In the past a couple might have many children in order to have workers on the farm. There have been times when birth control was more acceptable than others. Birth control is also easier to get a hold of today. Planning the number of children to be in a family is more acceptable than it used to be.
People are also living longer in many developed countries. Medical technology and access to nutrition has helped to created this situation. Lifespans have increased through the development of medical procedures and medications. Diseases that were once always fatal are now more likely to be overcome.
There is lobbying power in being the largest segment of a population. Politicians who are looking for votes will listen more intently to a larger group as opposed to a smaller one. Lobbying groups have been formed by the older population to lobby their democratic governments. They can have an influence on how government funds are spent. Politicians find programs for retired people easy to vote for since they represent a large voting block.
In many countries it is the taxes from current workers that support programs for the older people. These include funds for monthly stipends as well as medical care. When the proportion of workers is far smaller than the size of the older generation they have to support it puts a strain on the system. Taking care of an aging population has an effect on the economy.
About the Author:
Get inside info on the causes and effects of a large aging population now in our complete guide to everything you need to know about self managed superannuation and SMSF .