Socio-Economic Consequences of the Population Aging

A number of able-bodied, young population has a large impact on economic growth factors of a country. In case of equation of demand and supply on labor market young educated population becomes the most important factor of social and economic growth in main spheres. Moreover a number of population of military age is important for bringing up to strength of Armed Forces. And, as the experience of Israel, the USA, Canada and Australia shows a gender does not play such a big role as before.

In order to examine an impact of an age structure on an economic sphere of a country we have looked through the data of research institutes and the Congress of the USA. The results of such examination allow us to draw a conclusion that an optimal age structure of population needed for economic growth and growth of consumption is situated within 35-54 age limit. Expenses of elderly people are considerably lower than those of able-bodied population which allows us to draw a conclusion of long-term geopolitical dividends of countries having young population.

On the contrary, intensive processes of population ageing and reduction of able-bodied population have a reverse effect on economic growth tendencies. Most countries with ageing population face a problem of budgetary shortfall for paying pensions, tax levy reduction, growth of costs in the spheres of social and medical services for elderly people. Thus, ageing population has a very negative effect on geopolitical and economic potentials of a country.