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The Economic Impacts of Aging in Canada: Macroeconomic Indicators and Policy Implications*

Published online by Cambridge University Press:  29 November 2010

David K. Foot
David K. Foot
Affiliation:
University of Toronto
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Abstract

The declining rate of population growth and the consequent aging of the Canadian population is not a new phenomenon. However, current data and population projections suggest that the rate of aging will increase over the remainder of this century and beyond. From a macroeconomic viewpoint this implies a substantial decline in the growth of the labour force and, hence, the growth potential of the Canadian economy. However, this potential is also influenced by saving (and hence capital accumulation) and productivity performance. In these cases the impacts of population aging are relatively under-researched and reflect the resolution of conflicting forces. From a public policy viewpoint the pressures on government spending from demographic sources are at an historical minimum in the early 1980s, and hence this period offers a unique opportunity to develop the policies to effect the necessary transfer of public resources from programmes oriented towards the young to those oriented towards the senior members of Canadian society.

Résumé

Le déclin de la croissance démographique et le vieillissement de la population dont il s'accompagne n'est pas un phénomène nouveau au Canada. Les données actuelles et les projections démographiques indiquent toutefois que le taux de vieillissement ira en augmentant jusqu'à la fin de ce siècle et au-delà. Au point de vue macroéconomique, cette situation laisse supposer une diminution sensible du taux de croissance de la main d'oeuvre et, par suite, du potentiel de croissance de l'économie canadienne. Ce potentiel est cependant influencé par l'épargne (accumulation des capitaux) et la productivité réele. Or les incidences du vieillissement de la population en relation avec ces facteurs ont été assez peu étudiées et reflètent la résolution d'une opposition entre des facteurs antagonistes. Dans la perspective historique, la pression exercée sur les dépenses de l'Etat par les sources démographiques est tombée au minimum au début des années 1980; cette décennie constitue donc le moment le plus propice à l'élaboration de mesures destinées au transfert de fonds publics des programmes destinés aux jeunes aux programmes destinés à la population âgée.

Type
Articles
Information
Canadian Journal on Aging / La Revue canadienne du vieillissement , Volume 1 , Issue 3-4 , December 1982 , pp. 60 - 71
Copyright
Copyright © Canadian Association on Gerontology 1982

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