Macroeconomic Impact of Population Aging and Globalization (Article Sample)

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Economics
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Macroeconomic Impact of Population Aging and Globalization
The status of the US as the world's strongest economic power, which accounts for about one-fifth of the annual world income, is based on a large, resource-rich and well-developed country. It also boasts of a quickly ageing population as a larger fraction of its citizens are attaining their retirement ages. Sheiner observes that demographic change is due to occur and this poses problems for those institutions and policy areas that arose in an era when the population perspectives were still quite different (218).
As each decade passes, the American population has grown. In 2010 there were 308.7 million people in the US, 27.3 million more than in 2000. The main reason for the growth was the Hispanic population. The census confirms the rapid population growth of minorities in the United States. In future, the minorities could make up a larger fraction of Americans, than the majority white, non-Hispanic population. The population grew mainly in the South and West, from 281.4 million to 308.7 million, representing an appreciation of 9.7 percent.
Although this is the third largest growth in history, the rate of population growth is way lower than in the 1990s. Nevertheless, during the period the population increased significantly faster than Europe's, where the population only grew by 1.6 percent. In the long term, Europe's population will shrink, while the US population is expected to increase further, according to calculations by National Research Council (Sheiner 220).
Despite the growth, the population of the United States is aging. In 2010, 74.2 million Americans were under 18 years old, representing 24 percent of the population and a historic low. The median age of the population climbed from 35.3 to 37.2 years - the highest in history. The aging of the company is also confirmed by the fact that the group of the 45- to 64-year-olds grew by 31.5 percent between 2000 and 2010, while the 18- to 44-year-olds only increased by 0.6 percent. The share of the elderly will continue to grow in the future because the so-called baby boomer generation is slowly heading towards the age of retirement. This situation in the US is similar to Europe, albeit less pronounced.
Consequential to this situation, the United States suffers a risk of falling short of a labor force; this is cynical. Even in the health sector, the conditions will soon be entirely different without foreign influence. In a nutshell, the steady decline in existence would only relate to a continuously rising productivity, which would only be possible because the United States wage level will be exposed to the global dumping competition. An intact domestic market would not allow this absurd wage bond. But not even this is t...