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Economic Challenges Arising from Population Change - Coggle Diagram
Economic Challenges Arising from Population Change
Increased global inequality
More significant distribution in the socio - economic disparity between rich and poor classes. e.g. "In 2021, the top 10 percent of Americans held nearly 70 percent of U.S. wealth" this shows the wealth disparity
Affects the age distribution of of populations
Rapidly growing populations will have larger fractions of their populations concentrated in the younger age groups, therefore a larger working class
Increase of labor workers in the working class due to the increase of good/ raw materials needed
More significant distribution in the socio - economic disparity between rich and poor. Government will find it harder to maintain a equality with medicare, etc for the low socio- economic class, due to the increase in population with limited funds.
An example for this disparity is the US due to the vase population, the distribution of money isn't distributed equally amongst the citizens. The council of foreign affairs said that in 2021 "the top 10 percent of Americans held nearly 70 percent of U.S. wealth"
Food Security
natural resource degradation -> impacts food distribution and the economy
The existing food system is under constant pressure from many factors including population growth, increased demand for animal-based products and climate change
Impacting the 4 pillars of food security - availability, access, utilisation, stability
1 in 6 of the 120 million people need food aid
CASE STUDY - ETHOPIA AND IT'S INFLATION: the Food Price Index in Ethiopia is up by 43 percent compared to the same month last year. Prices for vegetable oil and cereals are up by over 89 percent and 37 percent year-on-year
increases in agricultural production required to support growing populations can extract an extremely high economic cost
population increases puts the world's food distribution and supply in turmoil - around 821 million people are undernourished and 151 million children under five years are stunted
Population Aging
Increased spending
People older than 65 are doubling and people over 85 are tripling are presntng major economic challenges over the next 40 years
THe collective cost of the fie budget pressures will rise from 8.8% of GDP (gross domestic product) today to 14.4% over 40 years
Demographic aggeing alone is estiated to acount for arond 40% of the increase in government spending over the next 40 years
Incentives for women to have children
Australia's rate of fertility is dropping and the population growth has been mainly dirven by high immagration intake
Women in Austalia dont have the financial means to support their children
This leads to a supply shortage of qualified workers, making it more difficult for businesses to fill in-demand roles
Declining productivity
High labour costs
Reduced international competition
Many countries look to immigration to keep their labor forces well supplied. Countries such as Australia, Canada, and the UK are attracting more highly skilled immigrants
integrating them into the workforce can be a challenge because domestic employers may not recognise immigrant credentials and work experience
Rapidly aging populations tend to have greater demands for health care services and retirement homes. Economies may face challenges transitioning to markets that are increasingly driven by goods and services linked to older people.
Countries are exploring a number of different policies to adapt to economic shifts due to aging populations eg. delaying the age of retirement, which effectively lengthens the amount of time that individuals spend working.
Population ageing are leading to secular stagnation if firms are discouraged from investing abundant loanable funds
