By JAMES GRUBER -
Yes, we’re rapidly ageing
Ageing doesn’t equal lower growth
Add resource constraints and there’s an issue
The upside of ageing
A week doesn’t go by without hearing about the problems which will be created by the world’s rapidly ageing population. Much of the focus is on how fewer people will mean lower future economic growth. The likes of Harry Dent have popularised the idea but it’s also been given intellectual heft by thousands of demographic consultants.
There’s no doubt that the world is getting older. Many will be surprised to learn that even Asia has serious issues on this front. For instance, fertility rates in South Korea, Hong Kong and Singapore are below those of European countries such as Italy and Germany, which are most commonly associated with demographic problems.
The post today though will look at the silver linings associated with ageing demographics. Older populations don’t necessarily equate to lower economic growth. Boosting productivity is the key to offsetting declining working-age populations. Without it, there will indeed be much lower growth but we’re hopeful that the seriousness of the issue will prompt real solutions to address productivity.
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