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Sunday, March 31, 2019

Impact and Solutions to the Global Elderly Workforce

Impact and Solutions to the Global Elderly Workforce drumheadWith todays advanced medical engineering science, the life expectancy order is spunkyer than ever. Life expectancy would sum up if the seclusion age is amelio graze at the current age. In effect, there give be much peck living on support objet dart there countenance for be less hands to offset the difference in income impose revenue which increases the dependency dimension. Increased government spending on subventions and healthc be bequeath result into debt. Higher valuate judge leave alone lose strength sendors and discourage huntforce productivity which lapses to the discipline in frugalal growth. Also, the paucity of workers entrust increase pursues which will cause wage inflation. However, businesses tie in to elderly much(prenominal) as retirement homes will master an increase of profits. On the an other(prenominal) hand, nonp areil solution could be the increase of retirement age. Also, incentives such as unhopefuler taxation evaluate on slowly retirement could be implemented.DiscussionHigher income tax rates are required over callable to the change magnitude elderly existence and shrinking work force. If income tax rates dont rise, the government will result in debt imputable to change magnitude spending on pensions and healthcare. This means the dependency ratio is raised. However, high tax rates will discourage inter depicted object investors and fall down men productivity which will pin economic growth. The shirking workforce will drive wages up which will lead to wage inflation. This will affect the countrys gross domestic product. On the other hand, industries link to the elderly such as retirement homes and healthcare will see an increase in business. The proposed increase in retirement age could lead to lower life expectancy and high workforce. However, this will add to sure-handed heavysetjapan is suffering from the problem with an aging population due to low birthrate rate and good healthcare. Low fruitfulness rate is due to late marriages as to a greater extent people are focusing on their careers. It is intercommunicate by 2060, 60% of japans population will be elderly people. Also, the beg for health care and pension are expected to increase which means that tax rates essential to a fault be change magnitude. According to a demographic expert, the current pension and social security programs in lacquer are non intentional to meet ends with an aging population. The government has combated this situation by allowing more(prenominal) immigrants to work in lacquer for jobs required for the aging population such as in healthcare. Japans consumer spending GDP has besides been dead(a) for the past few months.DiscussionI believe the reason for the dead(prenominal) consumer spending is because of the elderly as they dont often shop. As a result, rock-bottom spending will affects Japans GDP. This will too contribute to farseeing margeinal recessions as most of the money is stagnant in retirement funds. Also, the increased demand for healthcare and pension will cause Japan to increase in spending which will lower Japans GDP. To combat Japans flawed retirement funds, local third party enthronisation funds such as mutual and bonds should enter the market. These funds could be apply to establish better healthcare facilities that are in take aim by the uprise elderly population. The increase of trained immigrants will take the aging population down and maintain needs but it could too mean that Japans money is going out of the country. This could contribute to a deficit in Japans workforce trade. However, Japan could set up trade agreements such as workforce veer for technology with other countries to maintain a healthy GDP.SummaryAs a result of change magnitude elderly population, Japan is set to decline from the worlds 2nd largest delivery in place for China. Sinc e 2010, Japans workforce will decline 1% for the next 30years. The national debt in Japan is already 200% of GDP as of 2004 and is communicate to rise. europiuman countries such as Italy (1.1birthrate), Bulgaria (1.2birthrate), Russia and Germany (1.35birthrate) are suffering from low magnificence rates. Its predicted that the economic will shift from elder countries to emerging countries such as India and China.DiscussionAs a result of Japans declining workforce, the GDP is set to drop and the countrys debt will increase. The increase debt will even worse in the future because of the decreased workforce income tax. This will cause long term recessions. The problem of the elderly is in any case suffered by developed countries typically in Europe. This is due to the well- found healthcare and economic systems. This problem will contribute to the shrinkage of their economies. This will result in the economic growth shift to maturation countries such as India and China. different Japan and Europe, China is overpopulated. To combat the future elderly problem, China has acted by controlling birth rates in order to prevent overpopulation.SummaryCanadas healthcare expenditure has been substantially increasing. By 2020, its intercommunicate to cost CAD147billion which is an 83% increase from year 2000. As a result, Canada is one of the top spenders for healthcare on GDP. The majority of the spenders are the elderly. Due to the high demand of healthcare, Canada is currently facing a shortage of medical workers. It is also expected that Canada will have a shortage in other skilled workers. By 2050, it is predicted that the dependency ratio will increase to 4.4 workers for every(prenominal) 10 workers. Canadians are also investing more in doubtful investments such as stocks and mutual funds compared to 20 years ago. On the other hand, when baby boomers withdraw their pension funds, tax will be generated in the progress.DiscussionThe increasing dependency ratio w ill be a complete burden to Canadas workforce, debt and GDP. To decrease the ratio, healthcare benefits should be reduced. This could allow the privatization of healthcare services which will generate income tax. However, there will be serious negative social outcomes. Canadas tax rates should be revised to retaliate for the increased demand to prevent debt. In addition, the retirement fund programs should also be reviewed. To combat the lack of skilled workforce, Canada could loosen immigration laws or restrict early retirement age. On the other hand, the predicted tax generated from pension funds withdrawal could partially compensate for the increased expenditures. The decrease of younger population will be honorable as expenditures on education will be reduced. Furthermore, the increase spending in retirement associated items such as retirement homes could generate more tax. In the long run, Canada could increase funding on medical advances to allow for cheaper and more sustain able healthcare alternatives. Also, the public should also be continually advanced to invest in privately owned funds.SummaryEurope and other developing countries are suffering for unanticipated changes in fertility rates and aging routines. As a result, the workforce has been decreased and is burthen with higher age dependency ratios. In effect, higher tax rates are required to sustain the increased demand. Predictions suggest living standards per capita in Japan, US and Europe will be on a decline over the next 50 years. Europe would suffer a 20% increase GDP debt in the next 50 years while Japan and US would suffer from 21.5% and 10%. It is also expected that workforce productivity rates will decline.DiscussionGenerally, developed countries have higher elderly population as their healthcare systems have been established. Also, the lower fertility rates could be blessed on education as people are putting off marriages to a later age due to further studies. Another reason is th e increased youth dependency ratio. Compared with 3rd world and certain developing countries, it is not sensible to reproduce as children are a liability instead of an asset. For example, children can be used as labor in farms while in developed countries, direct them to school requires cost and time. Also, many couples put off having children because of their demanding career. However, because of this short term microeconomics demands, the long term microeconomics will suffer. Developed countries debt rate are projected to rise, and workforce and productivity rates are set to decrease due to the decrease of income tax. To combat the low workforce rates, countries should invest in technology to increase work efficiency. This will also control wage inflation. Also, countries could encourage immigration to balance out the elderly.SummaryTo combat the issue of wage increase elderly population and low fertility rates, France has acted by increasing children incentives. This insurance policy was launched in the 70s and also aims to lay aside more women in work. As a result, France has succeeded to be Europes 2nd highest fertility rate with 1.9children per womanhood compared to Irelands 1.4. Also, France has Europes highest female employment rate. Incentives include 3 year paid parental leave, free full time preschool, support day care, fixed wage for nannies, and monthly childcare allowances. In addition, oculus class mothers could receive up to 1000 Euros for having a third child. Thats almost like the minimum wage of 1200 Euros. This incentive policy is also seen in other European countries such as Germany cand UK but its not as beneficial as Frances. In the future, France plans to increase the grants to keep the birth and women employment rates healthy.DiscussionDue to Frances low population rate, an incentive policy to keep fertility rates up is price the high cost of expenditures. The costly benefits offered to women who work and reproduce is worth it a s it keeps the workforce healthy and growing. As a result of increased income, the countrys GDP growth rate would increase as more people are spending their money. That will lead to decreased country debt which means tax rates could be lower. Once the tax rates are lower, local and international investments will bloom which increases a countrys GDP. Also, the extra money could be used to invest that will potentially improve a countrys take cost and productivity efficiency. However, this is only sensible as a long term investment as if it is short termed, the countrys GDP would be greatly affected. Frances plan should be replicated in other underpopulated developing countries to prevent the white-haired(a) problem.SummaryProjection info says that ageing population in Australia is set to double in 40 years. Average work force age is expected to decline. The problems are blamed on low birth rates that unable to sustain the switching rate. It is also blamed on longer life expectancy . Australia has addressed this issue by creating a program for young skilled immigrants to enter the country. This will relive with the growth of the workforce and the workforces skill and productivity levels. However, this is not a viable solution as the immigrants will also age in the future which will force Australia to allow more immigrants in yearly to balance the deficit.DiscussionThis inevitable issue of the grey population is affecting most industrialized countries. Apart from the decrease in workforce members and productivity and skill levels, low birth rates are unable to sustain the replacement rate. This would result into the drop of Australias economy and wage inflation which could drive off potential global investors. as yet worse, the wage in Australia is already higher than other countries. The effects of wage inflation are already seen with major automobile companies such as Ford moving away from local manufacturing to other developing countries such as Thailand. A gain, the solution of young skilled immigration workforce would not be viable as its a short term solution. To truly solve this unprecedented issue, Australia should follow Frances footsteps of providing with children benefits.SummaryThe rising rate of the greying population in emerging countries are posing a problem as they are clingting old before they get rich. It has created problems such as pension plans that are turning non-sustainable. In addition, developing countries tend to suffer more due to the majority in unceremonious labour sector that salaries do not contribute to the countrys pension plans. In a life cycles perspective, the economic needs and income making vary over the course of life. Due to the increasing greying population, the elderly consumes more savings than generated during youth. This is critical as the country will result in slower growth compared to a country with more working youth people. This will also result into debt.DiscussionAgain, increasing wom ans participation in workforce by providing supple working hours or government funded day care could increase workforce participation. Also, the government can reduce citizens benefits or increase the tax to save costs. In contrast, a country without debt will likely throw reduced tax and more growth as it encourages business to invest. Thus, investments in technology will increase efficiency on the countrys production possibilities frontier. Also, it will increase competition which is beneficial for the GDP growth. However, problems related to to less income generated from the youth than used by the elderly could pose a serious problem. This will directly result in debt and could possibly wampum a long and painful recession. To only solution is to generate increased revenue. However, I believe developing countries that do not have established pension plans might not suffer as much as developed countries with high return pensions. Although we cannot learn about this problem from the past, we salve can make long term decisions that will save us from unexpected economy situations in the future.

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