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The one key reason U.S. economy has beaten predictions

Population aging is set to cause economic uncertainty. Unless, that is, we are proactive in finding solutions. Over the last decade, the U.S. has grown older, faster. Thousands of baby boomers reach retirement age every day. The ratio of non-workers to workers is rising, which means our consumption needs may outpace our productive capacity and also strain the Social Security and Medicare systems.

The National Bureau of Economic Research estimates that from 1980 to 2010, each 10 percent increase in the fraction of the population ages 60 and above decreased per capita GDP by 5.5 percent. Predictions point to continued aging across the nation. This news, alongside falling fertility rates in the U.S., need not spell economic slowdown, however.

There is one key reason U.S. growth has beaten long-term predictions to date—and one key solution to doing so in the future: increased labor force…

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