The fast-growing elderly population is posing a challenge to the United States government. A fast-growing population means that the working-age population is decreasing. Decrease in the working-age results to increase in the dependency ratio. The government, therefore has an added responsibility to pay for the population’s benefits since they can no longer provide for themselves and add to the economy. The decrease in working-age leads to a supply shortage of qualified and skilled workers, which, in turn, causes high labour costs, low productivity and at times wage inflation.
Additionally, the rapid growth leads to an increase in healthcare costs. The elderly population need a lot of attention; therefore, the government has to allocate more money and resources to the health sector. The government usually allocates the health sector a high amount of funds, but with the rapid growth in the elderly population, it is not enough since the demand is high. Therefore, it makes it hard for the government to increase spending cost to ensure improvement in healthcare.
However, the government can put in place strategies that will solve the problems it is facing. The government can encourage the elderly to remain the labour force, continue working. It will solve the issue and burden of the government to pay for the elderly population’s benefits. They will work for fewer hours and remain the labour force after retirement. With this, the government will receive revenues and the expenditure on pensions will reduce thereby increasing the economy’s stability.
Similarly, the government can promote and reward volunteer work, care work and artistic work for the elderly. The different works have many benefits to the individual and society. Taking part in such work will greatly contribute to the economy since the government will reduce welfare and health costs. It promotes mental and physical health since the elderly are engaging in productive activities. Promotion of health means a decline in the need for medical attention.