Australia And Japan 's World 's Most Economically Developed Countries Are Facing Their Biggest Challenge?

Australia and Japan while being two of the world’s most economically developed countries are facing their biggest challenge yet, the quickly ageing population. In that respect, Japan is facing the biggest population crisis as over 20% of its population are already falling into the 65 years and above population group and it is expected for the population to age and decline even further in the future. Whereas Australia is following the Japan footsteps, the young population is overtaken by the elder. As a result, the lost in eligible working age group or the lost in workforce makes it extremely difficult to remain competitive on the world’s market stage. Furthermore, as the pension-dependent population overweighs the taxpayers, this could lead to a major social security crisis. For instance, before, the ratio between taxpayers and elderly population was 5:1 but now with the rising number of the retired, the ratio becomes 3:1. Obviously, this will give rise to tax rates for the already shrinking workforce, more spending by the government on health care and pensions while those who in retirement remain paying little to no tax. All of these combine together become a huge concern for the government’s fund as taxpayers will eventually collapsed under increasingly heavy tax while more money is being spent without anyone paying for it. This is a country’s worst catastrophe as it will be heavily indebted. Therefore both countries have been actively finding and working on…