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Aging Around the World (Communications Final Paper )

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Executive Summary

Europe:

The aging trend in Europe is in most place they are growing older. According to the European Commission (2012) “while the population of Europe will be slightly higher in 2060 (517 million, up from 502 million in 2010), the population will be much older.

While longer lives are indeed a great achievement the aging of the population also poses significant challenges for the economies”. The share of those aged 15-64 is projected to decline from 67% to 56% while those aged 65 and over is projected to rise from 17% to 30%. This will cause Europe to go from have four people of working age to each aged over 65 to a mere two people of working age (European Commission, 2012).

● “The total number of workers is projected to decline by 15.7 million over the forecast horizon to 195.6 million in 2060.
● The decline in the workforce will act as a drag on growth and per capita income, with a consequent trend decline in potential growth. The latter is estimated to converge to below 1,5% in real terms in the long-term in the EU. Moreover, the demographic changes are expected to have substantial consequences on public finances in the EU.
● On the basis of current policies, age-related public expenditures (pensions, health-care and long-term care) are projected to increase by 4.1 percentage points to around to around 29% of GDP between 2010 and 2060”. The economics of depopulation are dark. At full employment, the real GDP has a good chance of declining due to the insufficient number of workers that cannot provide the productivity needed. United States:

“Graying means paying,” a quote from Neil Howe and Richard Jackson in the Washington Post article, “ The World Won’t Be Aging Gracefully. Just the Opposite”(2009). The United States as a nation is graying and the aging population isn’t going to stop anytime soon.

The reasons for

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