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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?


To: Seeker of Truth who wrote (51292)6/28/2004 8:43:09 AM
From: smolejv@gmx.net  Respond to of 74559
 
Hi Malcolm: I assume you meant >>investment significance of your interesting numbers<<.

In general, the states with aging & absolutely shrinking population will - off my head - experience:

a) increased health costs

b) decreased education / school costs, partially offset through the increase (?) in retraining costs. Or maybe increased educational costs - because there's more to be produced per young head than before. Some time in the near future we'll get to the point of 1 retired for 1 employed. No problem as long as the productivity follows the curve.

c) increasingly stressed social security system (if such exists)

d) longer working hours and years - for instance to offset the drop in the number of young people joining the work force. For instance by moving the start of their rents from 65 to 67 (plans to do so in Germany): No problem, if you want to retire, go ahead, but you will not see your pension until you're a little older.

e) the migration streams should have some meaning or influence on the changed picture of the economy...

It is pretty much a similar - if not identical - situation as it is with obesity. We don't notice it on a day-to-day basis...

Given the fact it's the baby boomers' generation, the question arises, how they'll be taken care (in the sense of 'disposed') of. in the 50s the chancellor Adenauer saw no problem here:"There'll always be kids being born." No more, sir.

Hope it was of some use, even if it is far from complete. Any other ideas or hints?

Regards

dj

PS: I know I'm repeating a thing or two that have already been said here - ACF comes to my mind for instance.