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The Economics of Ageing—What Do We Face?
Author(s) -
McDonald Ian M.
Publication year - 2020
Publication title -
australian economic review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.308
H-Index - 29
eISSN - 1467-8462
pISSN - 0004-9018
DOI - 10.1111/1467-8462.12391
Subject(s) - face (sociological concept) , population ageing , productivity , government (linguistics) , public economics , economics , ageing society , population , business , labour economics , development economics , demographic economics , economic growth , actuarial science , sociology , medicine , environmental health , social science , linguistics , philosophy
We, as taxpayers, face challenging problems in assisting the well‐being of old people mainly because preparing for and living through old age is a risky business. Through government, taxpayers can provide some insurance against the risks of old age, especially the risk of bad health and the risk of a long life. However, the ageing population suggests that maintaining this support will require increased taxation. This article quantifies this challenge for Australia and concludes that although increased taxation may be required it will be easily affordable from the much higher incomes generally received due to the secular increase in productivity.