Quote from Savings Beagle on January 18, 2022, 2:36 pm

Demographics have been a topic of discussion for a decade or more now when it comes to economic growth forecasts.  Some view the aging populations of many of the world's developed nations as a drag that will be difficult to overcome as the years progress.

I fell into this category for a while, but now wonder if it will truly provide the negative impact about which many are warning.  I definitely see the aging population argument, and can present it fairly easily with regard to the U.S.'s financial well-being - or lack thereof - in the next decade or two.  But, as we've seen with the Federal Reserve Bank's manipulation of the U.S. economy the past decade, might we not be able to continue some government-related offset to alleviate the aging population's impact?

If you have some thoughts, I'd truly like to hear them as my viewpoints evolve on the U.S. and global economic outlooks.

Meanwhile, here's a tease from the article "Hyped-Inflation Versus The Coming Global Demographic Vortex" by Tyler Durden/Zero Hedge.

A rising tide lifts all boats. An economy receives a significant boost through the prime-age (25-54) population as this cohort has the highest rate of income and consumption. Prime-age workers buy more homes, vehicles, and durable goods, helping to boost production and employment. 

Conversely, an economy feels a drag as older demographics (65+) comprise a larger share of the total population, particularly as modern economies are structured through heavy transfer payments in traditional retirement years. The older population rapidly slows consumption, downsizes home size, and is more able to leave the labor force, supported through Medicare and Social Security, at least in the United States. 

The next 10-15 years will bring a significant demographic drag, not only in Japan, the poster-child for an aging population, but also in Europe, the United Kingdom, China, and the United States. 

You can read the full article at this link.