Should Population Aging Be Seen As a Problem? A Neoliberal Assessment of the Impact of Aging on Society

As medical care continues to improve and life expectancies continue to rise, the number of elderly individuals in the world is expected to increase at an unprecedented rate. This pronounced demographic shift presents both problems and opportunities for society. Neoliberal economic theory holds that the rise in the number of aging individuals is primarily a problem because the elderly will only draw upon society’s resources while failing to contribute to the economic systems of society. Yet, these criticisms demonstrate the main weakness of utilizing neoliberal theory to assess social trends. An evaluation of the economic, social, and public health reveals that the current spike in elderly populations will contribute intangible benefits that outweigh the matters of utility considered in neoliberal theory.

The Neoliberal Perspective on Aging Populations

In order to assess the benefits of aging, it is necessary to evaluate the challenges that senior citizens present to societies from a political and economic perspective. Neoliberal theory provides the leading framework for viewing the problems associated with aging from an economic standpoint. Key characteristics of neoliberal economic policy include the view that economic systems are rational and the view that all societal transactions can be quantified monetarily (What is Discourse?). The theory defines “utility” as monetarily defined benefits that are allotted to individuals and asserts that rational decision-making compels individuals, businesses and state actors to make decisions that will maximize their utility (What is Discourse? 2014). At this point, it appears that neoliberalism can be solely confined to macroeconomic considerations. However, an examination of the perspective that neoliberalism foster reveals that it sets the foundation for an ideology that also influences the social outlook of individuals.

As a dominant economic theory, neoliberalism impacts various aspects of society, including the general viewpoint on how the elderly should be viewed and treated. Because neoliberalism values economic gain, it views older individuals primarily as non-productive, net consumers of resources, and thus a burden on production and society (What is Discourse? 2014). Neoliberal public policy especially plays an impact on the economic well being of older populations. While socialist policies might advocate for a social safety net that publically funds generous social security benefits, neoliberal perspective holds that individuals should accumulate resources for old age through their own initiative (What is Discourse? 2014). Thus, from a neoliberal perspective, the rise in aging individuals around the world can be viewed as a problem.

The Economic Impact of Aging on Society

Examining the scope of demographic trends reveals the concern neoliberals possess in regard to rising elderly populations. As a United Nations analysis determined, the number of individuals above the age of 65 is expected to triple to approximately 1.5 billion by the year 2050 (Bowerman, 2014). This number is significant to demographers because it strays from traditional demographic trends in population growth. Further outlining the problem implicit in these figures, Herrmann (2012) establishes that the unprecedented boom in senior citizens around the globe can be attributed to increased life expectancies and combined with decreased fertility rates (p. 24). As a result of these two factors, the number of elderly is growing in both developing and emerging countries around the world while the number of young people to support this decrease is shrinking.

Many developed countries lead the trend in possessing unbalanced ratios between the young and the elderly. The United Nations asserts that an increasing number of countries will have more adults over 65 than children under the age of 15 by 2050 (Bowerman, 2012). Thus, in many developing countries, the number of elderly is outpacing the number of young individuals in society who can replace the elderly in the workforce. According to Hermmann, countries such as Bulgaria, Germany, Greece, Italy, and Japan can expect to see a reduction in the working-age population, reducing the number of young people available to support retirement plans for the elderly through taxation (Hermmann, 2012, p. 26). Yet, to pay for the medical and social services that the elderly require, societies count on a young, robust workforce that can pay into the social welfare systems. If societies were to meet the needs of their elderly citizens, tax burdens would have to increase for the smaller percentage of young workers who are able to secure full-time employment.

The primary impact of the elderly population on the economy is decreased living standards for all individuals. For example, in the United States, the labor supply is projected to slow down approaching 2040, decreasing the number of young individuals who can be taxed to support public pension plans (Rogers, Toder, & Jones, 2002 p. 2). The primary problem this presents for young citizens is that they must pay into social programs that they do not currently benefit from. Because the government currently spends more per capita on elderly citizens, the labor force can be expected to contribute to the pension plans through taxation while seeing few benefits from their taxes that directly benefit them (Rogers, Toder, & Jones, 2002, p. 2). The economic dilemma supports the neoliberal contention that publically funded retirement programs pose significant fiscal challenges for society.

Japan serves as a case study to demonstrate the potential consequences associated with a rising elderly population. In Asia, Japan ranks first in the size of its senior citizen population, with individuals over the age of 60 accounting for 26.4 percent of its entire population (Tsuno and Homma, 2009, p. 3). Because Japanese society has been willing to fully support the elderly through public spending, the country serves as a useful case study to highlight the impact that public spending on senior care has on overall economies. In 2007, the Japanese government allotted 13.63 trillion yen to spend on services for the elderly, such as nursing-care, employment, and living accommodations (Tsuno and Homma, 2009, p. 3). Yet, facing a decreasing young population, the spending is viewed to be unsustainable. In Yubari, a town with a large aging population, spending on senior citizens forced the town to declare bankruptcy because of its inability to fund public facilities for the elderly and is reflective overall of the high levels of public debt in Japan (Japan – Spreading the Burden, 2007, p. 1). As the case of Japan demonstrates, the public costs of providing services to the elderly are a problem that countries will face as the century progresses.

Social Benefits of Aging Populations

While the economic considerations reveal problems associated with aging populations, a thorough evaluation of the social aspects of aging requires a nuanced perspective. Surveys of public opinions regarding senior citizens reveal that not all societies view this trend as a problem. For example, a survey revealed that 90 percent of the Japanese are concerned about the demographic trend, while half of those in Germany and Spain share similar concerns (Bowerman, 2014). Yet, this anxiety is not necessarily ubiquitous. In the United States, where health care costs for the elderly are expected to contribute to a 15 percent increase in gross domestic product, only 26 percent of those surveyed expressed the belief that the increase in senior citizens is a problem (Bowerman, 2014). The relatively low concern over the aging population in the United States is significant because it challenges the neoliberal assumption that individuals within a society should only care about maximizing their utility through economic gain. Simply challenging how societies view the perceived public issues associated with increasing aging populations can address negative social appraisals of the situation.

Further, the ability of the elderly to contribute to society through volunteerism demonstrates positive aspects of aging that are often overlooked. Presenting social theories on aging, Powell (2000) highlights that aging is considered to be positive because it enables individuals to become free from work and pursue activities that are intrinsically rewarding. Figures also highlight the prevalence of volunteerism among older adults. For example, more than 60 percent of communities in the United States provide civic engagement and volunteer opportunities that older adults can take part in, including Senior Corps, the Retired Senior Volunteer Program, and Senior Companions and Foster Grandparents (Mishovsky, 2011, p. 13). The potential for senior citizens to make a positive impact on society serves as a benefit of aging populations that cannot be appropriately quantified through the neoliberal framework.

The Public Health Implications of Aging

Yet, while the elderly have the opportunity to make positive impacts upon society, the care that society must provide for the elderly is another point of concern. In addition to the economic impact that aging populations have on society, many are concerned that society is not able to meet the obligations it has to meet the basic needs of senior citizens. Several figures identify areas of improvement that must be met when it comes to geriatric care. For example, in one-third of surveyed U.S. communities, older adults lacked access to preventative health care services and affordable health screenings (Mishkovsky, 2011, p. 7). Further, one-third of communities in the United States lack fitness programs for older adults (Mishkovsky, 2011, p. 7). Thus, the rise in the elderly might be viewed as a problem by those who

However, with these challenges come opportunities to provide better services for the elderly. For example, in the United States, 80 percent of communities have programs that provide home-delivered meals for the elderly while 25 percent include education on nutrition for older adults (Mishkovsky, 2011, p. 7). As these programs demonstrate, there are creative solutions that can be developed between the public and private sectors that address the needs of the elderly without bankrupting the public. Through community initiatives, many of the health needs of elderly individuals can be met by society.

Discussion and Conclusion

Overall, neoliberalism provides a pessimistic view of the global expansion of the elderly population, holding that the trend solely has a burdening effect on societies. Based on an evaluation of the public debt problems in Japan, it would appear that this lens is correct. However, the case study of Japan should be viewed as a point of caution, not a fatalistic prediction on the impact of the elderly in society. Indeed, there are many gains and overlooked opportunities to be made from taking the collective initiative to care for the elderly. First, senior citizens can contribute to society greatly through volunteerism, which has intangible benefits to society. Second, advancements in medicine and care for the elderly can increase the quality of life for the next generation to retire. As this assessment reveals, neoliberalism is incomplete in its assessment of the global boom in senior citizens because it fails to carefully weigh the unquantifiable advantages of maintaining a healthy, aging population. Because the attitudes and solutions that societies adopt will determine how society copes with its aging populations, this demographic trend should be viewed as a challenge that can be overcome rather than a problem.

References

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Herrmann, M. (2012). Population aging and economic development: Anxieties and policy responses. Journal of Population Ageing, 5(1), 23-46. doi:http://dx.doi.org/10.1007/s12062-011-9053-5/

Japan - spreading the burden. (2007). Asiamoney, 1.

Mishkovsky, N., & Moulder, E. (2011). Maturing of America: Getting communities on track for an aging population. National Association of Area Agencies on Aging (n4a). Retrieved from http://www.n4a.org/pdf/MOAFinalReport.pdf

Powell, J. (2001). Theorizing social gerontology: The case of social philosophies of age. The Internet Journal of Internal Medicine, 2(1), n.p. Retrieved from http://dx.doi.org/10.5580/15d1

Rogers, D. L., Toder, E., & Jones, L. (2000). Economic consequences of an aging population. Urban Institute, 6, 1-30. Retrieved from http://www.urban.org/UploadedPDF/retire_6.PDF

Tsuno, N., & Homma, A. (2009). Ageing in Asia--the Japan experience. Ageing International, 34(1-2), 1-14. doi:http://dx.doi.org/10.1007/s12126-009-9032-9

“What is Discourse?” (2014, March 12). Lecture given at Academic Institution, City, State.