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The Age of Aging: How Demographics are Changing the Global Economy and Our World

The Age of Aging: How Demographics are Changing the Global Economy and Our World

by George Magnus

John Wiley & Sons | September 24, 2008 | Hardcover

The year 2008 marks the beginning of the baby boomer retirement avalanche just as the different demographics in advanced and most developing countries are becoming more pronounced. People are worrying again that developments in global population trends, food supply, natural resource availability and climate change raise the question as to whether Malthus was right after all.

The Age of Aging explores a unique phenomenon for mankind and, therefore, one that takes us into uncharted territory. Low birth rates and rising life expectancy are leading to rapid aging and a stagnation or fall in the number of people of working age in Western societies. Japan is in pole position but will be joined soon by other Western countries, and some emerging markets including China. The book examines the economic effects of aging, the main proposals for addressing the implications, and how aging societies will affect family and social structures, and the type of environment in which the baby-boomers'' children will grow up.

The contrast between the expected old age bulge in Western nations and the youth bulge in developing countries has important implications for globalization, and for immigration in Western countries - two topics already characterized by rising discontent or opposition. But we have to find ways of making both globalization and immigration work for all, for fear that failure may lead us down much darker paths. Aging also brings new challenges for the world to address in two sensitive areas, the politicization of religion and the management of international security. Governments and global institutions will have to take greater responsibilities to ensure that public policy responses are appropriate and measured.

The challenges arising within aging societies, and the demographic contrasts between Western and developing countries make for a fractious world - one that is line with the much-debated ''decline of the West''. The book doesn''t flinch from recognizing the ways in which this could become more visible, but also asserts that we can address demographic change effectively if governments and strengthened international institutions are permitted a larger role in managing change.

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From the Publisher

The year 2008 marks the beginning of the baby boomer retirement avalanche just as the different demographics in advanced and most developing countries are becoming more pronounced. People are worrying again that developments in global population trends, food supply, natural resource availability and climate change raise the question as to whether Malthus was right after all.

The Age of Aging explores a unique phenomenon for mankind and, therefore, one that takes us into uncharted territory. Low birth rates and rising life expectancy are leading to rapid aging and a stagnation or fall in the number of people of working age in Western societies. Japan is in pole position but will be joined soon by other Western countries, and some emerging markets including China. The book examines the economic effects of aging, the main proposals for addressing the implications, and how aging societies will affect family and social structures, and the type of environment in which the baby-boomers'' children will grow up.

The contrast between the expected old age bulge in Western nations and the youth bulge in developing countries has important implications for globalization, and for immigration in Western countries - two topics already characterized by rising discontent or opposition. But we have to find ways of making both globalization and immigration work for all, for fear that failure may lead us down much darker paths. Aging also brings new challenges for the world to address in two sensitive areas, the politicization of religion and the management of international security. Governments and global institutions will have to take greater responsibilities to ensure that public policy responses are appropriate and measured.

The challenges arising within aging societies, and the demographic contrasts between Western and developing countries make for a fractious world - one that is line with the much-debated ''decline of the West''. The book doesn''t flinch from recognizing the ways in which this could become more visible, but also asserts that we can address demographic change effectively if governments and strengthened international institutions are permitted a larger role in managing change.

From the Jacket

The extension of human life expectancy is a great blessing. But, together with declining fertility rates, it creates no less big challenges. In this wide-ranging and well-informed book, George Magnus analyzes what needs to be done to lift the burdens created by aging populations.
-Martin Wolf, Chief Economics Commentator, Financial Times

It is a commonplace that, as the population of the developed world ages, there will be all kinds of profound changes in the way the world works. No one to date, however, has sat down and tried to think harder about the ramifications of increased life expectancy and smaller family size than George Magnus. Bringing to the subject decades of work as one of the City's best respected economists, Magnus shows himself here to be more than just a shrewd analyst of social and economic trends. He writes with clarity and panache, and leaves the reader feeling almost sorry for the "Boomerangst" generation that is fated to support the prolonged retirements of the Boomers themselves.
-Niall Ferguson, Laurence A. Tisch Professor of History, Harvard University; William Ziegler Professor of Business Administration, Harvard Business School

Demography is boring to most people, except when it comes to their own expected longevity and retirement plans. Demography is, however, destiny for countries. Literally. George Magnus provides a global tour de force of how we got to where we are and where we will be in the years ahead. And most importantly, what policymakers need to do NOW to prepare. In his hands, George makes this subject not only not boring but both enlightening and entertaining. A must read!
-Paul McCulley, Managing Director, Pimco

George Magnus is an author with a magnificent, truly globe-spanning mind-and the rare gift of lucidity, which benefits expert and non-expert readers alike. His book, The Age of Aging provides a powerful guide to humanity's future.
-Stephan Richter, Editor-in-Chief, The Globalist.com

About the Author

George Magnus is the senior economic adviser at UBS Investment Bank and has held this position since 2005. Before this, he was the bank's chief economist with effect from the merger between UBS and Swiss Bank Corporation in 1998, leading a team of professional economists to the highest accolades in the Institutional Investor and other industry analyst surveys. His previous responsibilities involved senior macroeconomic and managerial positions in Union Bank of Switzerland, SG Warburg and Bank of America. Mr. Magnus' research is widely known and respected in the financial services community and the business media in the United States, Asia and Europe. He was one of very few to articulate at the beginning of 2007 that a major credit crunch in the United States and the West was likely, with damaging and long-lasting economic consequences around the world. He lives and works in London, is married, and has four children.

Hardcover

256 Pages, 16.3 x 23 x 3.55 CM

September 24, 2008

John Wiley & Sons

English


0470822910
9780470822913

From the Critics

Financial Times- http://www.ft.com/cms/s/0/365d02c2-cfcb-11dd-abf9-000077b07658.html

The red flags raised by a grey world By Chris Cook

Published: December 22 2008 02:00 | Last updated: December 22 2008 02:00

"Demography is the senior social science: churchgoers this week will be reminded that Jesus Christ was born in the midst of a census two millennia ago. George Magnus''s The Age of Aging  is an account of the great population transitions currently under way around the world. Magnus is a renowned City of London economist, now at UBS, and his new book is a guide for the general reader on how the greying of the world will change everything, everywhere.

Demographic cycles are immensely powerful, and move just fast enough to cause occasional outbursts of panic. The western world intermittently gives in to fears about population extinction and Malthusian famine. The 1930s brought us titles such as The Twilight of Parenthood , while the 1960s gave us The Population Bomb . The new terror for the west is a large, aged population: the popular literature frets that future generations - usually Americans - are already doomed to penury because of the rising costs of medical bills and pension payments.

Magnus''s account avoids the hysteria that often affects this genre. He level-headedly discusses the west''s ageing problem with an explanation of the developing world''s demographic conundrums. For readers who are new to the topic, some of the chapters are useful primers on these crucial issues."

  The Economist http://www.economist.com/books/displaystory.cfm?story_id=12847201

Demographics

Greying globe

"There is no doubt that global greying will happen. Many of the people that will contribute to it have already been born, so short of some catastrophe that kills off large numbers of people, or some Viagra-fuelled leap in birth rates, population numbers and age composition can be predicted with fair accuracy for decades ahead. What remedies should be adopted it is much harder to say.

The pundits who have pronounced on this over the past decade or so fall roughly into three categories: those who claim that this is just another Malthusian scare story and can be sorted out with a few tweaks to retirement ages and pension policies; those who preach gloom and doom (a meltdown in asset prices, poverty in old age, health-care rationing and even intergenerational warfare as the young and the old slug it out for scarce resources); and those in the middle, who crunch the numbers and try to come up with sensible ideas to make their effect less grim.

This book falls firmly into the last category. It provides a clear, sober and well-written analysis of the problem, both in developed and developing countries, and runs through the options for heading off the worst effects. The biggest part of the solution lies in expanding the shrinking band of workers, mainly by getting people to retire later and persuading even more women to take up paid employment. At the same time more productivity will have to be squeezed out of the labour force that remains. And people will have to be persuaded to save a lot more for their old age." -- From The Economist print  edition, Dec 30th 2008.

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