Many people believe that an aging population is good for business, the economy and society, while others disagree with this statement. Although both views have some validity, I think that senior citizens are not beneficial for business, the economy or society because of the physical strain and the reduction of productivity.
One compelling argument in favor of base burden is that the government must allocate more money on pensions and healthcare in order to prioritize the elderly’s needs. Moreover, a smaller working-age population means a narrower tax base, which may lead to the growth of taxes and can put pressure on public finance since they have to work overtime to pay for the burdens. Besides that, an aging population also links to the reduction in the size of the workforce. The primary reason behind this is that older people are unable to perform physically demanding jobs, not only leading to the labour shortage, but also slower the progress and reduce productivity capacity.
Nevertheless, it is understandable why some people regard the elderly as good for business, the economy and society. Older people remain good consumers and active members of society as they continue to purchase goods and services. This is particularly important in the increasing demand for healthcare, leisure and retail, contributing to the business. As a result, it does not mean that having more elderly people, the society becomes more inactive. Equally important is the breakthrough in the workplace. A shrinking working-age population creates labour shortages, which facilitate business to invest in automation and labor-saving technologies. Consequently, in the long-term offset the reduction in available workers.
In conclusion, although the aging population contributes to business, the economy and society, they still contain plenty of drawbacks. Ultimately, physical strain and reduced productivity are the main reasons why elderly people bring about bad effects.