The Real News about Dependency Ratios

Posted by: Michael Mandel on January 25

Following up on a suggestion, here’s a comparison of the old-age dependency ratio for the five major global players (defined as the number of elderly per 100 working age population).


dependency1.gif

This basically shows the same conclusion as the chart from the previous item. The U.S. old-age dependency ratio goes up from about 20 to 33 over the next 45 years. That’s about the same increase as India, and much smaller than China, Western Europe, and Japan.

It’s also fun to take a look at the total dependency ratio (children plus elderly, compared to the working age population).

dependency2.gif

Not much change, is there?

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Michael Mandel, BW's award-winning chief economist, provides his unique perspective on the hot economic issues of the day. From globalization to the future of work to the ups and downs of the financial markets, Mandel-named 2006 economic journalist of the year by the World Leadership Forum-offers cutting edge analysis and commentary.

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