By Raymond
The aging populations of the world posea severe threat to the global economy. Many economists predict that when the next generation retires, our economy will be like a titanic and a very large iceberg, and we're the titanic. Our economies are doomed to fail if the populations of the world continue to age repidly.
THere are several reasons why this can cipple our economy. The rist is that when you retire, most people generally demand for entitlement programs funded by the government. But due to the aging population, the goveernment will have to spend more and nore on social security and Medicare than all others. More and more people collecting money than contributing, and ther will be even less in the furture. According to a graph provided by The Wall Street Journal, in 1962 speding for this was only 13%, but in 2002, in increased to 33%. That's a third of the federal income, which is over 2.5 trillion dollars!
There are thre generations that play a factror in the growing economic problems. My history teacher presented a brilliant way to present this problem, and now I will enlighten you. The first generations are the people after the Second World War. After the war, times were some of the best, and so people started to make large families. These people are known as the baby boomers. However, when they grew up, times became tough again, and so smaller families became more and more common. But now, when baby boiomers start retiring, there will be fewer people in the U.S. to suppor all the retirees.
So now you know the threat of the aging population to our economy. But, what will you do? When yaou return or acquire a job, be wary of the iceberg that we are slowly approaching.