Demographic Determinants of the Economic-Financial Crisis
Demographic Determinants of the Economic-Financial Crisis

Summary/Abstract: The waning of the birth rate and of fertility, the increase in life expectancy and the ageing of the population trigger important imbalances on the labor market, in the public sector and even in the financial-banking system. The population segment able to work decreases in favor of that representing the older population, thus causing an increase in the dependence rate of the elderly. The low birth rate and the low fertility render the work force reserve insufficient regarding the economic growth perspectives. The social insurance and health care budgets undergo heavy pressure as a consequence of the ever increasing needs of the pensioners. In its turn, the financial-banking system suffers from a reduction in the saving rate, the elderly being forced to reduce their consumption, let alone to save money, due to their low income from pensions. Even if they do not represent the main causes of the current economic-financial crisis, without doubt, demographic changes have contributed to its start, and their unfavorable evolution on a long term basis can accentuate such crises or it can start new ones. In such circumstances, it is mandatory to transform population ageing from a problem into an opportunity.

• Details
• Contents