Case study: Implications of dependency in MEDCs Flashcards
What type of dependency is the most problematic in MEDCs?
Aged dependency
Name 3 economic implications
Contracting labour supply
Health provision
Pensions
Contracting labour supply
- Falling birth rate and an ageing population, some MEDCs will fall below a labour replacement level.
- Consequently, fewer young people will be paying taxes, putting a strain on the government.
Health provision
- Elderly care is expensive (~1.6b/annum in the UK)
- The contracting labour supply means that there is less government revenue for health care provision.
Pensions
State pensions were introduced in the 1950s when life expectancy was lower, but now life expectancy is higher and the government is more strained in the modern day.
What are the positive implications of aged dependency?
-Most pensioners have more disposable income to spend into the economy due to paying off debt burdens and the combo of state and private pensions
name 3 social implications
Impact on the family
Poor service provisions
Healthcare
Impact on the family
Grandparents can help look after youth dependents
but may also contract degenerative diseases and become an emotional and economic burden
poor service provisions
Service provision will suffer as falling birth rates and more aged dependents appear
Healthcare
It will be increasingly tailored to the older population, putting pressure on other services
Name 3 political implications
Pension policy
“Grey vote”
Euthanasia
Pension policy
Retirement age has increased to 68 and will continue to rise
People are encouraged to contribute to a private pension
“Grey vote”
The elderly population is a very important demographic in elections, as they are a large group and vote the most. Policies are increasingly tailored to them.
Euthanasia
Right to die policies are being increasingly debated to ease the problems with aged dependency increasing
