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ABSTRACT
The population of the United States is rapidly aging due to increases in longevity and decreases in birth rate, leading to what some describe as a "Silver Tsunami." This demographic shift has the potential to create far-reaching consequences for the United States. As the overall age of the population increases, the number of individuals participating in the workforce declines, leading to potential economic decline if not countered with productivity increases. Further, increased demand for healthcare services could cause a dramatic increase in healthcare spending inflating an already massive government budget for Medicare. The demography changes also threaten the solvency of the Social Security program, causing policy makers to consider potential reform. Further policy reforms are considered to create a more age-friendly society such as, transportation, housing, and technology.
KEYWORDS: aging, population, demography, healthcare, Social Security
INTRODUCTION
The global population is aging precipitously, a trend mirrored in the United States. The cohort of US citizens over the age of 65 is predicted to more than double between 2015 and 2060, from 46 million to 98 million, creating a "Silver Tsunami" that predicates a number of challenges to the economy, healthcare, politics, and society (Mather, Jacobsen, & Pollard, 2015). A marked increase in longevity combined with a decline in birth rates has aged the global demography. While this demographic shift is more remarkable in other developed countries, it will still lead to pronounced changes in the demographic makeup of the United States. This older population is set to reduce the overall workforce and its productivity, increasing pressure on programs such as Medicare and Social Security, and in turn, generating added strain on the working age sector of the population. To support both the elderly cohort and the rest of society, the government will need to make dramatic changes to policies and institutions. In addition, corporations and individuals will need to modify their behavior and decision-making.
The objective of this paper is to provide an analysis of the impact of this demographic shift within the United States, and to outline recommendations to counteract the negative consequences of aging, while enjoying the benefits of the collective longevity and experience of the elderly population. First, this paper will investigate the factors contributing to the aging phenomenon in the...