1. Problems that people have and how we can solve them.

2. In many developing countries around the world, around 70% of the population is under 30. Examples: Iran, Tanzania Problems: Not enough jobs to accommodate young people. Youth become restless. In Iran, heroin has become a blight on college educated youths. Youth are fatalistic and more willing to become violent and revolt against governments. Not enough resources to feed/educate children.

3. What is Malthus likely to recommend?

4. Thomas Malthus would recommend: Cellibacy! Neo Malthusians would recommend: Anti-natal policies: forced sterilization/abortion, tax benefits to single child families or childless couples If not, the following is likely to occur:  Instability: War  Disease  Poverty: Old will keep some of the young in a permanent state of starvation.

5. Populations can essentially be split into two groups: breadwinners and dependents. Working adults are “breadwinners”. Children, the elderly, and the disabled are dependents. The ratio of working adults to dependents is known as the “dependency ratio” or PSR. In an aging population, elderly dependents outnumber adults, and adults further outnumber children. Examples: China, Italy.

6. What are the problems with too many dependents in an economy?

7. The government inevitably increases taxes or shifts a greater amount of tax revenue towards caring for aging dependents Less money is available for education or to help families and parents, encouraging people in turn to have fewer children. Fewer and fewer new “consumers” (i.e. children) enter the economy each year, which lowers GDP. Lower GDP = shrinking economy = huge unemployment = less taxes to help elderly = other programs cut to help elderly = less children = lower GDP

8. What is it? Why will social security experience potential future funding problems?

9. Oh boy two old guys from the Economist talking to each other: http://www.youtube.com/watch?v=G_VPKGewapI What problems can China expect to experience in the future as a result of the current age structure? What policies should China adopt to avoid these problems?