Demographic Trends Shape Economic and Social Futures
- Imagine a country where the majority of the population is elderly.
- Who will work in factories, teach in schools, or drive buses?
- Now picture another country with a booming youth population.
- Are there enough jobs, schools, and healthcare facilities to support them?
Demographic trends are more than just numbers - they are powerful forces that shape the economic and social futures of nations.
Aging Populations: Challenges and Opportunities
An ageing population occurs when the proportion of elderly people increases due to low birth rates and high life expectancy.
Economic Impacts
- Increased Dependency Ratio
- Fewer working-age individuals support a growing elderly population.
- Higher taxes or reduced social services may be needed.
- Rising Healthcare and Pension Costs
- Governments face financial strain to fund healthcare and pensions.
- Labor Shortages
- Fewer workers can slow economic growth and innovation.
When analyzing ageing populations, consider both the economic and social impacts. This holistic approach will strengthen your exam answers.
Youthful Populations: A Double-Edged Sword
A youthful population is characterized by a high proportion of young people, often due to high birth rates and declining infant mortality.
Economic Impacts
- Potential for Economic Growth
- A large workforce can drive innovation and productivity.
- Equally, large number of consumers will boost domestic production and trade.
- High Dependency Ratio
