The number of elderly people growing more than the youth in the world. Currently there are more people 65 years of age than the population below the age of five years. This is not the case that the world has not seen before. Recently, this information came out in a study conducted by Deutsche Bank’s Torsten Scholar. What is the effect of the activities of the elderly on the global economy, now that it is a matter of discussion!
Torsten Scholl says after two decades, there will be two 65 year old people against the population below the age of five. According to the World Health Organization (WTO), between 2015 and 2050, the population of 60 years of age will increase from 12 percent to 22 percent. Apart from this, the number of people above 80 years of age will be increased from 1 percent to 4 percent.
Concerned economists worry about this information. In general it is acknowledged that if the working people are more then the growth will be higher. Economists believe that due to the rising pension, poor demand and extra savings, growth cannot be increased with effective materials such as short-term low interest rates.
It is inevitable that the gray world is coming forward. But it is not necessary to have negative effects on economic growth. If the elderly community operates dynamic activities, it may not have negative effects. Apart from this, the value of votes of this population also highlights the importance of their evaluation. The information came out in a report by The Economist.
In the first place, it is understandable that old people have negative effects on growth. 1. The number of operational people decreased to increase production. Due to this change in population, the number of operational people in almost 40 countries has decreased. With the increase in the elderly population, the government is also reducing investment in the growth-oriented investment such as education and infrastructural sectors. Rather, investing more in the pension and health sectors. Two the burden of more tax is also on the working people who are against this older population. But the biggest hurdle in growth is to reduce productivity.
The question arises; really the productivity of the elderly is less? It is not that they lack the ability to work, their strength decreases with age, so their productivity is less. A research in Germany’s manufacturing sector in 2016 failed to find the reason for reducing the productivity of the population above 60 years. Companies can utilize the experience, professional connections and make the right use of older people. In fact, if there is a reason for reducing the productivity of the elderly, then the salary structure. Initially, salaries started increasing in the beginning of the career. In the end, it decreases. But this is not always the case.
In a report published by Moody’s Analytics, it says that many companies have lesser salary than older workers. The main reason is their ability to influence. But what kind of effect is not clear? However, the authors of that research say that the companies which have older workers, more technology-driven. It may be because they are not willing to invest more to recruit staff…Because, at the end of their career, they do not expect the results of the training. Studies have shown that young bosses are more technologically better than older bosses. It is obvious that older people are more contradictory to the new technology. Older people do not like change. The world’s most populous population is in countries like Japan, Italy, Canada and Germany. But the number of countries like China is growing rapidly even in countries like this. Young people have less meaning than the number of workers. As a result, the production of products and services will be reduced, which will provide services to the rest of the world.
What is the solution to this situation? The economy that has fewer young workers, can spend a lot more on retirement, they can come to a solution by increasing the age limit of work…For example, by increasing the retirement age. However, the main problem in this case is the reluctance of the elderly towards technology. Other goals should be given priority in that case…Especially, breaking the bar of opportunities for competition and job change.
Old Vote Political Value
However, there is no fear of decreasing the number of voters even if there is a threat to reduce the growth due to the old economy. Older means more number of voters. Politically, the acceptance of this population is more. Such voters are more conservative than young voters. The politics that is in common is supported by the trend. Do not rely on the new arrival. In countries where older people are more, if they are asked to choose between a dynamic non-existent society or a fixed society, then they choose the second one. However, it is important for the politicians to understand that change in the population, which is involved in industrialization of rich countries, brings benefits. With the adoption of new technology and its opportunities, a good election area is created.
According to a report by World Economic Forum in 2015, the elderly voted with a strong emphasis on retirement and healthcare. Environment protection, education and poverty support are not the first choice. Older people prefer policy-limited policies such as housing, unemployment, inflation or taxes, as opposed to anti-corruption policies.
In addition, a recent study found that when the number of young working people decreased, the producers turned to mechanism, invested more in automation. As a result, the growth continued to grow. Robots still have no impact on the services sector. But their skills are improving day by day.