An Aging New World

In the article, “The Four Global Forces Breaking all the Trends,” the authors discuss the disruptive forces of urbanization, accelerating technological change, an aging workforce, and globalization.  There is no stopping these forces as they all happen simultaneously to one another.  As we find ourselves in an increasingly interconnected world, it is becoming more apparent that the world must find ways to handle the challenges faced by an aging population.  First, innovation is necessary in order to replace the aging workforce as lower fertility rates lead to an eventual decrease in population.  Secondly, we must find a way to care for the increasing amount of elderly as the baby boomers approach retirement age and life expectancy continues to increase.

While a decrease in population might be good news for an over-crowded planet, it can negatively impact the economy.  The economy grows as people join the workforce each year.  More people working equals more production, earning, and spending [1].  As the aging population leaves the workforce, countries need to find ways to make up for the decrease in the working population.  There are two obvious options: find ways to encourage people to work longer and create technological advances that could replace the aging workforce.  The first option will likely require government intervention.  Currently the United States is incrementally increasing the retirement age.  Although this is for different reasons, it will lead to more people staying in the workforce for longer periods of time.  They also encourage people to work longer by increasing the social security benefit that they receive if they wait longer to retire. 

Another way to deal with a smaller workforce is through technological advances. Technological advances can pertain to any line of work, but manufacturing stands out in this case.  As the workforce in manufacturing declines, so does production and therefore the nation’s GDP.  In order to save the economy from a potential decline, innovation is necessary.  Further investment toward advances in efficient practices and robotic automation will become more and more essential as the world progresses forward.

While the world must be innovative in the way it handles the decrease in its workforce, it must also find ways to handle an overwhelming amount of elderly.  Elder care is in demand as multi-generational households become less common.  So how do we prepare for this?  How do we make sure that every elderly person receives the care they need as the price of this care remains unaffordable for many?  This is a very real issue with no obvious answers.  Is the answer in policy, technology, or a social venture; perhaps all three? 

[1] http://www.cbsnews.com/news/dropping-birth-rates-threaten-global-economic-growth/