Our Future - Immigration

All industrialized western nations have a remarkably similar problem - a time bomb ticking away - their ageing population.   

Over the next 50 years, the ageing of Australians will cost the public purse some $1.2 trillion in extra spending, equal to approximately $175,000 per household. Those funds will need to come from somewhere. 

Old age is creeping up on the industrialized countries of the world posing governments with some tough problems. In broad terms they will either need to double taxation to finance the existing health care and pension benefits for pending retirees. 

We have 2.5 million people, or 13 per cent of the population already over 65; by 2050 that number will rise to 24 per cent of the population. By that time, under the present system, the government will certainly be paying out a lot more than it is receiving, unless there are major changes. 

Our longer life expectancies, our cradle to the grave health philosophy and our declining productivity (caused by an ageing population) on one side and our low birth rate (not producing enough young workers paying tax) on the other is a formula for disaster. 

There must be significant cutbacks in welfare and health, we just don't know what they will be and when. At the moment over 65s require a third of the health budget but by 2050 it will be a half. Life on the southern side of the baby boomer mountain could be harsh as more old people scramble for a share of a smaller tax base. 

Sex is at the heart of the problem - the children of our baby boomers are not producing children at the same rate as their parents. 

At the end of this decade baby boomers will exit the workforce at a faster rate than Gen Ys will enter it. This will lead to a skills shortage that will prompt wage inflation and lead governments to increase migration. 

The scramble will be on for migrants who will make an immediate contribution to the tax base - 20 to 30 years old, skilled, educated and likely to work for 40 years before health costs kick in. 

The first baby boomers will begin drawing the aged pension from 2011 onwards. For the past 50 years the number of people added to the productive population has been about 200,000 a year, however, with no change in immigration, this growth rate will drop next decade to less than 100,000. 

This is not good news for government or business. 

Australia and other western countries need to make a major decision: go down the increased migration path in order to maintain prosperity or steady-as-she-goes which means a profound change to our lifestyle.

Article Source: http://EzineArticles.com/?expert=Neil_Handley

About the writer -----------------------------------------------------------------------------
Neil Handley graduated as a Bachelor of Economics and Accountant. After some 20 years as a stock broker Neil turned to property development. He then acquired a controlling interest in a property development company listed on the stock exchange and became CEO. He has been involved in developing residential subdivisions, industrial subdivisions,shopping centres, office buildings and medium density residential dwellings in Sydney's north shore, Northern Districts, Parramatta and Liverpool areas and on the Gold Coast, Queensland. One office building was sold to the AMP for $25ml. Neil's company advises on building wealth via property.
Go to http://www.specialstrategies.com .

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