https://padlet.com/shajidmerchant/ovm4ft75ldbkzmh5 Love Economics! en-us 2020-07-09 04:30:58 UTC 2020-10-21 08:15:40 UTC hello@padlet.com shajidmerchant https://padlet.com/shajidmerchant/ovm4ft75ldbkzmh5/wish/675315393 •Discuss to what extent an ageing population is a serious economic problem. [8]

]]> 2020-08-11 06:31:27 UTC https://padlet.com/shajidmerchant/ovm4ft75ldbkzmh5/wish/675315393 https://padlet.com/shajidmerchant/ovm4ft75ldbkzmh5/wish/844041583  Discuss to what extent an ageing population is a serious economic problem. [8]

An ageing population will lead to a high dependency ratio, as people 15 and below and 65 and above will not be economically active. As a result, there will be a tax burden on the working population, which will lead to a fall in standard of living and aggregate demand as there will be less disposable income, therefore decreasing both consumption and investments. An ageing population are likely to have health problems. Therefore, the government will have to spend more on healthcare, and welfare services to the elderly population, which means there will be an opportunity cost of spending on  infrastructure or education. Due to a reduction in the workforce of the country, there may be a lack of workers in firms, leading to the closure of firms. As a result, the country's economic growth will fall. However, the ageing population may reduce the unemployment. This will lead to lower government expenditure on the unemployed and homeless people. An ageing population can contribute to the economy by making economic decisions with their experience and better understanding of the country's economy. This could improve the economic growth of the country. The government could extend the retirement age. As a result, the ageing population could contribute to the economic growth as they could still be economically active.]]> 2020-10-20 08:30:53 UTC https://padlet.com/shajidmerchant/ovm4ft75ldbkzmh5/wish/844041583 https://padlet.com/shajidmerchant/ovm4ft75ldbkzmh5/wish/844043157 Firstly, an ageing population will lead to a rise in the dependency ratio to increase as there are now more people over 65 who are economically inactive causing tax revenues to decrease. However, an ageing population may not increase the dependency ratio if the retirement age is increased which means that the population can work at a later stage in life and be economically active reducing the dependency ratio and thus increasing the tax revenue.

Secondly, an ageing population will increase the need for pensions and healthcare for which tax revenue must be dedicated which could have been used for different purposes thus causing opportunity cost as this money could be used for better infrastructure. However, an ageing population may cause a young population to enter the working age which will increase in the economic activity and reduce the dependency ratio thus more people in the working age increasing the tax revenue and which may lead to higher government expenditure thus increasing AD and economic growth.

Thirdly, an ageing population may have greater demand for retirement homes and adult diapers which may not be entirely negative but the economy may face some challenges transitioning from markets for a young population to an old population. However, this can give private firms incentives to provide for the ageing population which could give rise to new firms and new market thus providing the government with a new source of tax revenue. ]]> 2020-10-20 08:31:35 UTC https://padlet.com/shajidmerchant/ovm4ft75ldbkzmh5/wish/844043157 https://padlet.com/shajidmerchant/ovm4ft75ldbkzmh5/wish/844044496 An aging population will cause a rise in the dependency ratio, leading to a rise in the burden on the working individuals in the economy to provide goods and services for individuals who are too old to work.  The rise in working burden in turn leads to a fall in the quality of life. Furthermore, an ageing population will increase the need for healthcare and pensions. As a result, a higher proportion of government revenue will be spent on the ageing population, which has an opportunity cost of better infrastructure, education and training, leading to a fall in the standard of living. Also, to generate this revenue, higher direct taxes will have to be imposed. This leads a fall in disposable income which causes a fall in standard of living and firms will have lower incentives to work, causing a fall in production and leading to issues such as tax avoidance. Moreover, the work force of the economy will fall as an increasing number of individuals retire. As a result, there will be a fall in the potential output due to the fall in the quantity of labor, leading to a fall in the productive potential if the economy. This will cause a fall in the GDP and inurn a fall in economic growth. 

However, an ageing population increases the productivity in an economy due to their high levels of skill, experience and knowledge. This increases output, in turn increasing the economic growth. They may also pass on their expertise to the younger generations, which will benefit the economy in the long run. An ageing population is also an indicator of high living standards because it portrays the high quality of healthcare services which leads to longer lives. As a result, this will attract immigrants who can benefit the economy by increasing the quantity of labor in the economy, in turn causing a rise in the productive potential of the economy. ]]> 2020-10-20 08:32:11 UTC https://padlet.com/shajidmerchant/ovm4ft75ldbkzmh5/wish/844044496 021142parel https://padlet.com/shajidmerchant/ovm4ft75ldbkzmh5/wish/844050181 An ageing population might be a problem because there is an increase in dependency ratio, icreased goverment spending on health care, there may need to be higher taxes and it could lead to a sortage of workers. 
An ageing population might not be a problem because  firms could be encouraged to give jobs to older people,  older people can be an economic asset,  indicates a good health care system,  dependency ratio may be falling, may be importing labour and the government could increase the retirement age.]]> 2020-10-20 08:34:43 UTC https://padlet.com/shajidmerchant/ovm4ft75ldbkzmh5/wish/844050181 https://padlet.com/shajidmerchant/ovm4ft75ldbkzmh5/wish/844050861 Q - Discuss to what extent an ageing population is a serious economic problem. [8]

A - 

Firstly,
An ageing population will lead to an increase in the dependency ratio , hence lesser economically active citizens will be working to provide for a higher number of people aged 65 and up this will furthermore fall in their quality of life due to the rise in the working burden.

Moreover , a shortage of economically active population will lead to a shortage of workers and as a result firms will be more willing to pay higher wages to employ these workers Hence leading to inflation.

Secondly ,  
A large ageing population requires pensions and healthcare which makes up a large percentage of government spending , this government revenue could have alternatively be used for fulfilling other macro economic aims such as investment in education and hence involves an opportunity cost.

However , an ageing population is not always a problem.

Firstly , 
An ageing population possesses experience and knowledge , hence their understanding can lead to better decision making for a business thus reducing costs.

Secondly,
An ageing population showcases that the country's citizens have a high life expectancy , and a hence a good healthcare system  and as a result attract immigrants to the country .

Thirdly, The government could extended the retirement age and as a result the working population does not have to fall , and this way the problem can be tackled.


]]> 2020-10-20 08:35:01 UTC https://padlet.com/shajidmerchant/ovm4ft75ldbkzmh5/wish/844050861 https://padlet.com/shajidmerchant/ovm4ft75ldbkzmh5/wish/844061899 An ageing population can lead to a higher proportion of the total population being aged 65 and above. This also means an increase in the dependent proportion of the population. As a result of this, government expenditure will increase for the healthcare, income etc. for the senior citizens. Due to increased government expenditure, the government will have to increased taxes paid by the independent population. This way, the working population will end up saving lower income and also face lower standards of living. 
 Secondly, an ageing population can also reduce the proportion of the working population as more citizens will be retiring from their jobs for health reasons. This can reduce the number of workers in the country. As a result, firms in the country will face lower output of goods/services due to lower number of workers. As a result of lower output, firms will be less able to satisfy consumer demand, thus preventing them from gaining more profit. This way, firms will begin to shut down, as a result, increasing unemployment and also lowering the GDP of the country. ]]> 2020-10-20 08:40:03 UTC https://padlet.com/shajidmerchant/ovm4ft75ldbkzmh5/wish/844061899 https://padlet.com/shajidmerchant/ovm4ft75ldbkzmh5/wish/847434483 An ageing population would indicate higher population being of age 65 or above, which means higher dependent population than the independent population, creating burden on the working age population as taxes would be higher due to government spending more on healthcare or ageing population benefits,  which in turn would restrict people's spending ability due to lower income, thus decreasing the consumption of the people  and result in lower AD, which would mean lower GDP and therefore lower economical growth.
Moreover lower consumption would result in businesses suffering from loss, resulting in lower investments and a higher ageing population would mean higher old age population , which would again decrease investments as old age workers have instable health (usually suffer from sickness) and are less productive, this would lead to further more unemployment as businesses would shut down, therefore government's income and spending ability would decrease because of lower tax collection due to lower or no income at all as a result the AD would decrease significantly, also leading to lower economical growth, lower productivity, lower investments and saving, leading the economy to a poverty cycle.
However, an ageing population indicates more experience and knowledge of the working old age population, which means higher productivity skill wise, which also helps the young working age population learn more skills and thus creating a difference the workplace, a higher productivity in this case would lead to higher output and larger profits of the firm, which can lead to higher incomes and therefore increase the consumption. Businesses performing well would mean more investments made as a result the AD would increase, thus increasing the GDP and therefore increasing the economical growth of a country.]]> 2020-10-21 04:33:10 UTC https://padlet.com/shajidmerchant/ovm4ft75ldbkzmh5/wish/847434483 https://padlet.com/shajidmerchant/ovm4ft75ldbkzmh5/wish/847435469 An ageing population means that most of the population in the country is moving up the age pyramid and the number of birth rates and people in working age are decreasing. 
Firstly due to ageing population, many people would have crossed the working age population and the country would have lesser workers, However, If it is a developed country, due to better medical care, health and hygiene, the retirement age limit might be increased.
Secondly, the dependency ratio in the country would be high as many people would have retired and would rely on income earners, However the if this is again in a developed country, the immigration would be high and the aged and well experienced residents of the country would be able to fetch teaching jobs to the new and young population.

Thirdly, due to a lot of old age population, the government would have to spend a lot of money on medical facilities and infrastructure so the roads would be better and the people would be transferred to the hospital quickly and safe for medical attention. However, this would also ]]> 2020-10-21 04:33:46 UTC https://padlet.com/shajidmerchant/ovm4ft75ldbkzmh5/wish/847435469 https://padlet.com/shajidmerchant/ovm4ft75ldbkzmh5/wish/847438737 An ageing means that the avergae age of the population is high. 

Firstly, The ageing population will decrease the productivity as the ageing workers maybe suffering form heath issues not allowing them to work for longer periods of time, thus this will lower the firms profit. 
Secondly, ]]> 2020-10-21 04:35:47 UTC https://padlet.com/shajidmerchant/ovm4ft75ldbkzmh5/wish/847438737 021306parel https://padlet.com/shajidmerchant/ovm4ft75ldbkzmh5/wish/847439044 •Discuss to what extent an ageing population is a serious economic problem. [8]

firstly , the main impact of an ageing population is the increase in the dependency ratio. If the retirement age remains fixed, and the life expectancy increases, there will be relatively more people claiming pension benefits and fewer people working and paying income taxes. this will require high tax rates on the current, reducing the workforce.
secondly, shortage of workers. An ageing population could lead to a shortage of workers and hence push up wages causing wage inflation.
thirdly ,higher savings for pensions may reduce capital investment. If people are putting a higher percent of income into pension funds, it could reduce the amount of savings available for more productive investment, leading to lower rates of economic growth.


]]> 2020-10-21 04:35:58 UTC https://padlet.com/shajidmerchant/ovm4ft75ldbkzmh5/wish/847439044 https://padlet.com/shajidmerchant/ovm4ft75ldbkzmh5/wish/847452777 Firstly, an aging population, in the long run, will cause an imbalance between the dependent  (aged 65 and up) and independent population, this will place a tax burden on the working age population, reducing disposable income causing consumption to reduce thus decreasing aggregate demand and reducing economic growth. However, an aging population can indicate the presence of a good healthcare system, this can lead to attraction of migrant labourers which would reduce the dependency ratio to nominal levels, causing the tax burden to reduce and thus consumption to rise, increasing AD resulting in economic growth.

Secondly, an aging population leads to lower population who are of age and able to work, this can lead to a reduction in the productivity of firms and reduce retained profits due to welfare schemes offered such as pension, this will reduce induced investment and cause a fall in the potential output of the economy, the latter will cause AD to reduce and the former will reduce goods and services produced, both reducing economic growth. That being said, an ageing population leads to a higher strata of experience amongst the populous, this experience can be passed down to younger more able workers allowing for an increase in the quality of workers. As a result production of firms will increase leading to higher output and thus economic growth.

Thirdly, an aging population may lead to higher government expenditures as more of the revenue will be spent on welfare schemes for the elderly such as subsidized healthcare or transport. This can lead to oppurtunity costs where investment in infrastructure or education would have to be forgone. This can stump the external growth of firms and quality of workers, leading to reduced induced investment, both of which will cause a reduction in economic growth. However, such an increase in government expenditure can increase aggregate demand, leading to increased economic growth.]]> 2020-10-21 04:44:17 UTC https://padlet.com/shajidmerchant/ovm4ft75ldbkzmh5/wish/847452777 https://padlet.com/shajidmerchant/ovm4ft75ldbkzmh5/wish/847454555 Discuss to what extent an ageing population is a serious economic problem. [8]


An ageing population could possibly lead to a shortage of workers in an economy , therefore the firms might have to respond by encouraging more individuals to set foot into the workforce through offering flexible working practises.These practises would empower the employees . Further, a rapid growth in the ageing population in a country would result into fewer-working age people in the economy.This would possibly lead to a supply shortage of qualified workers etc  which would make it difficult for the firms . Ageing population will contribute to an increase in future levels of government spending.Several disadvantages of an ageing population could be  an increase in pensions and healthcare costs.  Moreover, The main impacts of the ageing population could be an Increase in the dependency ratio, The working population might have to pay higher taxes ,shortage of workers,]]> 2020-10-21 04:45:22 UTC https://padlet.com/shajidmerchant/ovm4ft75ldbkzmh5/wish/847454555 https://padlet.com/shajidmerchant/ovm4ft75ldbkzmh5/wish/847460186 An ageing population leads to reduced number of people seeking for jobs. Health can be a factor that largely affects the productivity of the workforce. As a result, increasing the amount of taxes the working age population needs to pay thus reducing the usable income. The reduced workforce leads to lesser economic growth. Secondly, a larger amount of older people would lead to more strain on the healthcare sector leading to an increase in demand for workforce in the healthcare sector. Due to the shortage of younger workforce, the demand and supply are not met thus increasing the cost of healthcare in the economy.]]> 2020-10-21 04:48:36 UTC https://padlet.com/shajidmerchant/ovm4ft75ldbkzmh5/wish/847460186 https://padlet.com/shajidmerchant/ovm4ft75ldbkzmh5/wish/847475443 An ageing population means that majority of the population is above the working age. This will lead to more people getting retired, so this will increase the unemployment in the economy. We will also see a decrease in productivity as workers continue to age. The dependent population will increase, which will increase the burden on the working population. The government would also need to increase welfare services, like free healthcare for elderly, elder homes and many other services which could be done by collecting more taxes from the working population, and more resources and money will be allocated towards these welfare services.]]> 2020-10-21 04:57:24 UTC https://padlet.com/shajidmerchant/ovm4ft75ldbkzmh5/wish/847475443 https://padlet.com/shajidmerchant/ovm4ft75ldbkzmh5/wish/847486111 2020-10-21 05:03:23 UTC https://padlet.com/shajidmerchant/ovm4ft75ldbkzmh5/wish/847486111 https://padlet.com/shajidmerchant/ovm4ft75ldbkzmh5/wish/847486283 2020-10-21 05:03:29 UTC https://padlet.com/shajidmerchant/ovm4ft75ldbkzmh5/wish/847486283 https://padlet.com/shajidmerchant/ovm4ft75ldbkzmh5/wish/847487080 2020-10-21 05:03:59 UTC https://padlet.com/shajidmerchant/ovm4ft75ldbkzmh5/wish/847487080 https://padlet.com/shajidmerchant/ovm4ft75ldbkzmh5/wish/847500886 An ageing population leads to reduced number of people seeking for jobs. Health can be a factor that largely affects the productivity of the workforce. As a result, increasing the amount of taxes the working age population needs to pay thus reducing the usable income. The reduced workforce leads to lesser economic growth. Secondly, a larger amount of older people would lead to more strain on the healthcare sector leading to an increase in demand for workforce in the healthcare sector. Due to the shortage of younger workforce, the demand and supply are not met thus increasing the cost of healthcare in the economy.

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