Introduction. Demography is a study of human population, also known as science of population.
The focus of demography is fertility (birth), mortality (death), marriage and migration. Demographics involve a more scientific assessment of the size, spatial distribution, and composition and how these three components change over time. Demographers usually care about statistics about fertility, mortality, and migration as these three variables are components that involve population change. This component is measured through the rate of birth, death, and displacement of population that determines population size, age composition and how the population develops. A demographic expert often asks, “How many men and women are now?”, “Where are you now?”, “How many births and who?”, “How old is it?”, “What is the nature of those who have died or moved ? “, And” Why and how did they change? .”People who support this demographic field are Achille Guillard (1855).
He argues that demography is “a study of social and natural history of human septation or as a mathematical knowledge of the population, the changes they experience and the physical, civil, intellectual and moral conditions of the population “.U.S. Census Bureau’s which stated in the demographic is destiny in this study case is a government department which researches and provides accurate information regarding the country’s people and economy.
According to Wikipedia it state that The Census Bureau’s will collect information regarding population, economy, government, communities, and demographics nor statistics which is used to determine distribution of Congressional seats to states, apportion seats in the House of Representatives, define school district boundaries, as well as a number of decisions pertaining to community programs.Question 1 : What challenges do graying populations create for companies ?The number of elderly people be increasing every day, this will lead to higher absolute numbers of elderly people. In addition it will cause a larger share of elderly especially in the sector or field of work.
This is because the elderly have a lot of knowledge and experience in a field compared with young people. And relatively fewer numbers of working-age people. The thing happened because of the dumping of the elderly.
They cannot afford to donate or do a heavy work. The challenges or dispute are primarily in maintaining their workforce and forecasting changes in consumption patterns. Companies need to tailor and effectively market products to aging consumers or clients.
First of all, people need to work hard at a young age to secure their old age. This will make it easier for them to buy their needs and wants in the future. When they grow older for sure young people will replace the old generation in various fields such as jobs and so on.
However, most firms or other workplaces are more concerned with old workers. This is because they are much more experienced and have more information than young people. The knowledge is not easy to be gained in a short time for young people .
The taxes have to go up because there are older people who receive the benefits. Second, because there are more people who will retire, there will be fewer people working in the labor market. Companies will find it hard to find resources for workers in the labor market that are older people. This is because elderly are less productive than young people. They also cannot afford to do heavy work. This will limit production to company.
Next, since elderly people are regarded as less productive, the quality of the work force will be reduced. Companies that hire a graying population will have its production output slowed down by this demography thus making the company less competitive. Pension companies will be burdened while trying to pay for pension funds for this huge demography. Lastly, since there will be a change in taste and preference, spending habits as well as lifestyle, spending on some products will decrease as more people enter this age bracket.Question 2 : What opportunities do graying populations create for firms?Older people also bring opportunities or give their own advantages such as plastic surgery and drug sales.
For example in Japan, they have been working on major or technological such as signal transmission devices that are attached to the elderly or older people. It is a signal to their families to know their grandparents are still alive. Robots are being developed to help or assist elderly . There will be a increasing demand for a new product. The case illustrates this in medicine, eye care, cookware , financial services, and so on.
There will be a demand for private.In addition, there will be a demand for Private Nursing homes and hospitals . This is because pharmaceutical companies will deploy medicines and provide nutritious foods especially for the elderly. Not only that, there is a higher demand for healthy food-based products such as supliment, vitamins, cod fish oil and high demand for products offered by recreational parties.
For example yoga, taichi and so on. The small conclusion that can be made is that the elderly tend to spend their money on this health food.Another example of business opportunities spurred by aging, media companies are hoping to profit from aging viewers and readers by shifting their target away from the traditional range of 18-49 year olds. Although some adaptations lie on the more distant horizon, others can be undertaken right now, to the benefit of both younger and older employees, firms, and society or both now and in future. Question 3 : How will demographic changes affect the competitiveness of countries in the international marketplace?Countries with many young people will make it difficult for them to find or work. This is because they need to compete with each other for a relatively limited job opportunity.
Not only that, countries with many people or older people also face the same problem. When they are forced to find young people to replace their work. We are aware that young people are more energetic and can carry out heavy tasks. However young people will lose a lot of experience or ability to work in these countries.
In addition, the burden of managing the elderly will automatically be borne by the countries. It also shows imbalances resulting from low or negative population growth rates. These countries will have smaller labor pools and a higher age dependency ratio. Due to the abundance of labor, countries with higher population growth rates such as India for example will have lower wage rates and the cost of managing the elderly will spread to a larger group of young workers.
Because parents are considered to be less productive in doing work, the quality of the workforce in China will certainly decrease and will cause the decline in the production of a country. China is known as a populous country with a population of 1,376,745,728 people around 2018. Let’s say that the majority of the Chinese population is of old age certainly the economy is not as good as many young people in the country. This will cause a high gap to reach a good economic level for that country.As a result of rising population increases may lead to investment capital flowing from relatively older cocoons to relatively younger populations and the effects or consequences of which will lead to higher capital gains.
Question 4 : What can countries do to counteract the impact of these demographic changes on their economic competitiveness? In the late 1970s and early 80s, China’s central government enacted policies across the country that forced families to have only one child. This step was done or carried out to address the impact of demographic change on the nation’s competitiveness. As a result of the measures taken, the rate of birth of the country is rapidly falling, but what is decreasing is the percentage of the girl born. Influenced by cultural priorities for boys, many families choose to deprive girls illegally or even commit a baby murder. So one of their children will be a boy.
China recently reviewed its rules to restrict families to two children.Today, China faces the challenges of disproportionate twin demographics in the number of men and women, and the growing population. The effects of this growing population will cause the Chinese economy to fall because elderly or older people cannot afford to do heavy work. This will lead to the country’s lack of supply of raw materials and so on.
Not only China , Japan also suffer the same fate. When Japanese people shrink or slight. In the past five years, the country lost almost one million people. With one of the world’s lowest births and small immigration, Japan may continue to face persistent economic problems as the population continues to grow old.
The government has tried to encourage women to have more children, but less effective. And, people are reluctant to open the door to mass immigration. Among the reasons Japan does not want to open up opportunities or take foreign workers is that foreign workers will bring trouble to them. For example language problems, how they work and so on.
Among the reasons Japan does not want to open up opportunities or take foreign workers is that foreign workers will bring trouble to them. For example language problems, how they work not same with japan people and so on.Question 5 : What has been the impact of the one-child policy on China’s economic fortunes ? Demographic changes in China are redrawing the parameters of the country’s future. These changes include a substantial decline in the supply of young labor, the escalating financial burden of caring for the elderly, and an aging society with Chinese characteristics, caused inlarge part by China’s three-decade one-child policy. These changes have already begun to exert a powerful impact on the Chinese economy, and pose a serious risk to future economic growth, internal migration and immigration, social harmony and political stability. As society ages faster than expected, China’s future demographics need to be reassessed.
Sustained low fertility means that the number of young workers will decline more sharply than the projected. Declining fertility levels reduced the availability of young workers, but this was exacerbated by the expansion of higher education. Sustained low fertility and rising college enrollments mean that the supply of young workers will continue to decline.As China’s demographic fortunes reverse, the economy will slow down regardless of other factors driving growth. The shrinking labor force will also require education reforms to boost productivity. China’s labor force must become better educated, more skilled, and produce graduates with a greater ability to innovate.
The current higher education system, which focuses on training technicians rather than nurturing individual thinkers, suffocates creativity. Greater investment must also be directed at the nursery and primary level, especially in poor areas where basic nutrition and educational facilities are still lacking. China’s demographic transition will create opportunities as well as challenges.
Population aging and the growing pile of pension funds are already forcing changes in the capital market and financial services sector. Without well-functioning capital markets, savings cannot be put to productive use and may even lose their value. An aging society will require a more sophisticated investment sector, there by presenting new opportunities for financial managers and investment services. Another big growth area will be health care. Establishing better long-term insurance plans will be critical in a country with few young family members to care and provide for the old.
A sound social safety net needs to be put in place before the economy feels the full force of deteriorating demographics.