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Economic Argument Demographic Transition Discussion

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Why should we care about demographic transition? Pick a moral, political or economic argument and explain your reasoning

It is important to care about demographic transitions, because it affects nearly every aspect of everyone’s lives. Today we may not feel it, but tomorrow we will. And it doesn’t matter if you are young or old.

Although the moral, political and economic arguments are all intertwined, I will consider the economic impact it may have on an individual.

We all need money to survive. Some more, some less, but the reality is that having a strong economy helps us live better lives. Economies need to consider demograhic transitions in order to prepare for a healthy economy, much in the same way we need to consider aging to prepare for a healthy body and mind as we get older. As birth and death rates rise and fall as well as immigrants arrive or locals emigrate, the number of people (as well as the condition they are in) in a society will determine how much money will (or will not) fuel the economy.

An economy that is transitioning towards having more people in the workforce helps drive the economy. If we can increase the health of the older population, less money is spent on healthcare and more on other important things. If a healthy older population continues to work, there is more money driven into the system. However, this may also put a strain on younger people as competition may increase, but perhaps they can become more entrepreneurial and create products to sell to older adults who may have more money than a younger person. All things positive and negative need to be considered and prepared for.

Demographic transitions are important for any economy to watch the trends and give itself enough time to prepare for the future.


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