The answer to that question lies with us, all of us.
Many countries with aging workers also have growing economic productivity. The number of people globally age 65 and older will soon eclipse the number who are five years old and younger, according to recent U.
This shift is being met with economic anxiety in many quarters, with theories that an aging population is a threat to economic prosperity. Some argue that an older workforce will be less productive, lacking the dynamic skills of younger workers.
Others speculate that an older population will create an excess of savings over investment, leading to slow growth and secular stagnation. Others say that a wave of retirees is likely to take important skills out of the marketplace.
Our recent research suggests that much of this panic may be overblown. In our empirical work, we find no evidence that countries with rapidly aging populations are experiencing slower growth.
Many, such as Germany, are growing rapidly instead. As our baseline measure for population aging, we studied gross domestic product GDP per capita from to — the period commonly viewed as the beginning of the adverse effects of aging in much of the advanced world.
Within that period, we compared the change in the ratio of the population above age 50 to those between the ages of 20 and We included countries in the sample.
The results were surprising. Even when we control for initial GDP per capita, initial demographic composition, and differential trends by region, there is no evidence of a negative relationship between aging and GDP per capita. On the contrary, the relationship is significantly positive in many specifications.
Our findings raise new questions: What can explain these patterns in the data?
In other words, technology not only might be able to offset potential negative effects of aging populations, it already is. The posts saw the arrival of a range of labor-replacing technologies that help companies automate the production process.
The most recent of these are robotics and artificial intelligence AI.Benefits of the New Economy 1) Equal standard of living for all: An economic policy based on mutual consideration will lead to allocating necessary public resources to .
Chairman Brat, Ranking Member Evans, and other members of the Committee, thank you for this opportunity to testify today about the causes of economic growth, the benefits associated with economic growth, and current limits on .
The new economy is the result of the transition from a manufacturing-based economy to a service-based economy. This particular use of the term was popular during the dot-com bubble of the late s.
In fact, when capital is sufficiently abundant and cheap, a shortage of younger and middle-aged workers can trigger so much adoption of new automation technologies that the negative effects of labor scarcity on GDP can be completely neutralized or possibly reversed.
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Oct 18, · The Benefits of the New Economy: A global economy gone haywire is a strong motivation to rethink the way in which the world’s economy functions. In this futuristic book, the authors, who represent the Department of Economics of a nonprofit organization called the Advanced 5/5.