Macroeconomics Case Study

Ageing Japan: Growing Problems

OR

Abstract:
An ageing population and a declining birthrate was one of the top priority issues for the Japanese government. By 2030, 30% of the population would be above the age of 65 years. The demographic trend had great economic implications. The Japanese government's study showed that it would face an additional deficit of 4.5 trillion yen by 2010 because of the increase in pension recipients. Moreover, with fewer workers to support the retirees, the tax burden on the working population would increase. Japan would face a critical capital shortage as funds are diverted from financing productive investments to financing pension deficits.

Pedagogical Objectives:

• To discuss the various economic problems faced by Japan because of an ageing population and the various remedial options

Keywords : Ageing Japan's growing problems, Pension reform, Social security, Gross domestic product, Fiscal deficits, Baby boom generation, Business Environment Case Study,Population growth rate, Government and Business Environment Case Study,Japanese economy, Health benefits, Retirement benefit bill, Negative demographic trends, Defined benefit, defined contribution