Demographic Changes In The Next Decade

Demographic changes have always been an important factor affecting the economy. Demographic phenomena have been often detected and characterized by the scientists and named with distinct names like the Baby Boomers, the Generation X or the Generation Y. These trends have been stimulating the economy and triggering various economical events during the recent history like the recent economic recession. Reuters has claimed even before the increase of the crisis volume that the retiring Boomers generation would affect the economy negatively (Reuters, 2008). The most prominent demographic change predicted for the next decade is the aging population of the planet. Bloom and Canning (2004) assert that the segment of the global population that is age 60-and-older is rising sharply both in percentage terms and absolute numbers, with the expectation that it will surpass one billion within two decades. The probable consequences of this situation will be that pension and health care expenditures will rise while unemployment will fall, as result of a smaller labor force offered. Also economists predict that stock prices will fall while bond prices will rise, suburban property prices will fall while old people will move to the country side (Moffatt). It is a dominant opinion that the demand for products that the elderly people are interested in will increase, resulting to a price increase. Personally I predict that we will experience an increase in property investment, in tourism services demand and in health care services demand.
Pessimists believe that the aging population will affect negatively the economy as taxes and health care expenditures will increase and they would have to be paid by the younger people. In contrast, I believe that these consequences can be avoided with proper use of the technology and medicine evolution. As these areas advance day by day, they can improve dramatically the productivity of the workforce while increasing the quality of life of the populations. Less workers will be able to produce wealth for more people while the health care system can save great amounts of money if diseases that require long term treatment like diabetes, Alzheimer or cancer are finally cured. In addition, I consider the reduction of the overall global population as a positive turn as our planet is already overutilized and its resources are exhausted.

References
Bloom, David E. and David Canning. 2004. "Global Demographic Change: Dimensions and Economic Significance." Paper presented at the Federal Reserve Bank of Kansas City Symposium on "Global Demographic Change: Economic Impacts and Policy Changes." Jackson Hole, Wyoming. August 26-28.Bloom, David E.. 2004. In Global Demographic Change: Dimensions and Economic Significance ,

Kaiser, E. (2008, January 31). Economy faces bigger bust without Boomers. Retrieved from http://www.reuters.com/article/ousivMolt/idUSN3131412220080131

Moffatt, M. (n.d.). The Baby Boom and the Future of the Economy. Retrieved September 20, 2009, from http://economics.about.com/od/healthcareeconomics/a/baby_boom.htm