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valkas [14]
3 years ago
8

List several political, social and economic consequences of having a shrinking workforce population (aged 18-64 years) relative

to a growing population of older adults (>65 years) in developed countries
Medicine
1 answer:
Marina86 [1]3 years ago
6 0

Answer:

The consequences of a shrinking workforce population include:

Political:

Decision-making domination by the older adults

Government by the aged (gerontocracy), who may be more concerned with their today than with the future.

More conservative political thoughts and practices

Social:

Lack of adequate welfare system

Negative impact on education and innovation

Decline in socio-cultural activities

Stressed family life

Reduced labor market

Pressure on the healthcare facilities and social insurance

Economic:

Reduced workforce

Decline in labor productivity

Higher labor costs

Contraction of businesses  

Lack of international competitiveness

Deteriorating fiscal balance

Explanation:

A shrinking workforce population is filled by more aged adults than children and youth.  This situation increases the dependency ratio.  It constrains the healthcare system and increases the need for governments to pay out more in benefits to the less-productive class without commensurate support from the workforce population.

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