The Economic Impact of an Aging Population (Essay Sample)

THE ECONOMIC IMPACT OF AN AGING POPULATION
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The number of older people in society has been on the rise for the last few decades due to increased life expectancy. The advancements in medicine have made it possible for people to live up to 80 years and beyond. Unfortunately, the increase in an aging population has social, political, and economic implications for a nation. The economic productivity of a person varies depending on age. At an advanced age, individuals become less productive because of various reasons: deteriorating health, reduced energy levels, and lack of employment. The most notable effects of an aging population on the economy are slowed Gross Domestic Product (GDP) growth and high financial burdens on the government.[Ronald Lee and Andrew Mason, “Cost of Aging,” Finance & Development 54, no. 1 (2017): 7.]
The number of prime workers that a country has determines the overall economic stability of the region. Unfortunately, there are rising numbers of baby boomers in developed nations which have led to a significant decline in the labor force. A reduction in a working population leads to slow GDP growth due to reduced economic productivity. Similarly, an aging population places a great burden on the government and the younger people who are required to shoulder most of the bills. In the United States, for instance, older people (pensionable) have free access to hospital insurance covers which significantly burden the federal and local governments. Taking care of pensions for a large number of retirees and the provision of public transfers can b