The linchpin of the healthcare economic issue is the fact that many government pension systems are projected on future tax receipts. As the labor force decreases, the government programs can no longer be financed through savings and the costs are again pushed down to the younger workforce. Finally, as the population ages, the economic growth will be negatively affected by the lower savings rate. As the population ages, workers will earn less money and they will be forced to save less money. As a result, the drain on the economy may actually reverse the devices of economic
The long term effect of the situation is that it lowers life expectancy in adults. Moreover, childlessness and the falling birthrate causes seniors to outnumber the young people. This will lead to the increase of immigration, which is needed to fill the job positions which cannot be filled with locals because they are either too old or died.
The current state of health care not only has impacts on individuals’ financial situation, but also affects the nation’s overall economy. If the hospitals stop charging people with the fake price, the cost of healthcare will definitely go down significantly, which will result in increasing amount of personal saving. Individuals will have more money to spend, which will increase the amount of money flows in the community. And less people will be struggling with their finances because of their illness or their medical
In addition, diseases that sometimes come hand in hand with old age, like osteoporosis, Alzheimer’s, or diabetes, will lead to a shift from acute to chronic illnesses. Not only will there be a desperate need for health care workers, but younger adults and children will also be affected as money flows away from programs like education, transportation, and other areas to Social Security and health services. Population ageing can push our economy into inflation, debt, and depression. As workers leave the labor force, firms are forced to increase wages to compel people to enter the workforce, thus increasing inflation. The government will be forced to spend more of their revenue on services for the elderly while their income decreases, forcing the United States into even greater debt.
Being able to support a family is already a difficult task but when people are getting laid off from jobs, unemployment rates are increasing, and the economy is struggling many people can barely afford to buy necessities for themselves never mind for an entire family. An extended decrease in fertility levels could have hugely negative effects on the country’s demography. Lower fertility rates mean less babies being born which in turn decreases the younger age population while the aging population slowly increases. This is one of the main issues with low fertility because it does not evenly decrease the country’s population. I have found a couple of articles from previous papers to support my thesis.
However, according to Krugman, “Because American children from low-income families are often uninsured, they’re more likely to have health problems that derail their life chances.” (Krugman) Parents that don’t make enough money will end up having their children becoming very ill which their child might get serious health problems. If the child ended up becoming ill they might need dreadfully expensive medicine or surgery. Also, when parents are not making enough money, they tend to send their children with no lunch packed with them and end up not eating in school. However, Leonhardt mentions in his essay, “The fact that the rich earn enough money to save money allows them to make investments that other people simply cannot afford.” (Leonhardt) The more money the rich make the more they become richer. Why is that the case?
One of the most serious problems of aging population is pension that is occurred by some causes such as low birth rates, the falling of workforce, and the decline of production capacity and government revenue. These are happened sequentially and young people will have to be faced with that. In addition, the better health care might influence the aging population. The developing of health care leads people to long life span. It is favourable, but at the same time, the risk of getting ills or diseases is raised.
Health care is a very big affect around the world every country has it, but some countries are better than others in health care. Many of the world’s economies are starting to crash because of high unemployment in each of the countries. Also the stock market has dropped value because people can’t afford to buy stocks. Today people are trying to find jobs, but a lot of companies are not hiring right now. This all started because about six years ago the stock market crashed and a lot of people lost their jobs.
When the employee’s hours are reduced they earned less money, which hurts them financially. An immeasurable amount of small businesses are refusing to grow, in fear of higher taxes and the amount of money they have to spend on healthcare for employees. Many employers are trying to avoid paying higher insurance premiums. However, as of today policy for healthcare premiums is already higher than in the past which has many complications due to the rising cost of coverage. In paying for higher insurance and also the fines in which small business incur, employers will have to cut expenses to keep their business running smoothly and profitably.
According to Fairhall and Steadman, (2009), even though the recession is hard on all, it is worse on the uninsured due to health care and insurance cost rising faster than incomes. Nevertheless, even those with jobs are lacking in health insurance due to employers, who provide insurance, are increasingly dropping their sponsored insurance. Many find that purchasing a health policy or paying for medical care out-of-pocket is cost prohibitive. “Since the recession began in December 2007, the number of unemployed Americans has increased by 3.6 million,” (Fairhall & Steadman, 2009). In 2009 it was stated that approximately 46 million Americans were uninsured, however not all of that number is due to the inability to afford coverage.