AP HUG Unit 2.9

Aging population

A population in which the proportion of elderly people is increasing.

Two main causes of an aging population

Higher life expectancy and lower crude birth rates.

Why does higher life expectancy create an aging population?

More people live into old age because of better healthcare, medicine, and nutrition.

Why do lower birth rates create an aging population?

Fewer babies are born, so the population has a smaller share of young people.

Political consequences of an aging population

Older people gain more voting power, and governments must spend more on healthcare and retirement support.

Why do older people have more political influence?

They vote at high rates and often support policies that protect their fixed incomes.

Why are retirees often concerned about tax increases and price increases?

They usually live on fixed incomes such as retirement savings or Social Security.

Social consequences of an aging population

Changes in family structure and greater need for elder care.

How does industrialization affect family structure?

It tends to shift society from multigenerational households to nuclear families.

Why can aging populations create pressure on families?

More elderly people may need nursing homes or retirement care, which can create financial burdens.

Economic consequences of an aging population

Labor shortages, slower economic growth, and pressure on retirement systems.

Why do aging populations create labor shortages?

More people retire while fewer young people enter the workforce.

Why can aging populations slow economic growth?

There are fewer workers available to produce goods and services.

Why do aging populations strain Social Security?

Fewer working-age people are paying taxes while more retirees are receiving benefits.

What is Social Security?

A government retirement program funded by taxes from the working-age population.

Why was Social Security easier to fund in 1935?

People lived shorter lives, so fewer benefits had to be paid for a shorter time.

What is Japan an example of?

An aging population.

Why is Japan a classic example of an aging population?

It has high life expectancy, low birth rates, and a large elderly population.

How can governments respond to aging populations?

They may encourage immigration of working-age adults or adopt pronatalist policies.

What is the dependency ratio?

A comparison between the working-age population and the non-working population.

Who counts as dependents?

People under age 15 and over age 64 or 65.

What happens when the dependency ratio rises?

There are more dependents for each worker, increasing pressure on the economy.