The major problem is that it will affect economic growth. Based on macroeconomics theory, output is a function of labor and capital input. When the number of the old becomes large, the effective labor input will certainly decline. As a consequence, output will be adversely affected that may slow the annual growth rate of national GDP.
The government, on the other hand, will face the pressure coming from aging population. Expanding health care costs for elderly people will be a big burden for government. Government will be required to ameliorate social welfare system to meet senior citizens' needs. More hospitals, more health services, and more programs designed for the aged are probably necessary.
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