http://www.economist.com/news/briefing/21601248-generation-old-people-about-change-global-economy-they-will-not-all-do-so
The article by the economist talks about the shift in the demographics that will happened around the world in 25 years. This is a widely discussed topic today and economists say that the entire global politics will have to change in order to adjust for these changes. The authors talks about three channels through which the demography influences the economy: changes in the size of the workforce, changes in the rate of productivity growth, and changes in the pattern of saving. By examining those three channels we can estimate how the economy will shape up in the future. The trend shows that there are more workers in the labor force past the age of 65 today. This means that the new policies either extended retirement age or cut back on the supply of pensions. There is also a discussion of privatizing Social Security, which posses both opportunities and threats.
I would be interested to see what solutions do you have to resolve a problem that we will all face in not so distant future.
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