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Wetherly and Otter: The Business Environment

Chapter 05

It has been highlighted that Britain is facing a ‘demographic time bomb’ in which medical advancements have the consequence of allowing people to live far longer than previously predicted. This process will potentially have serious implications for the UK economy, as the proportion of the population requiring services financed via taxation (pensions, the NHS etc.) is expected to grow dramatically over the coming decades. As a result, inter-generational tax transfers from young workers to old retirees will increasingly come under pressure. Are there any solutions to this problem, or does this process signal the eventual demise of the post war welfare-state?

See:
http://www.ageconcern.org.uk/AgeConcern/BC9A9A793C104423BC4D70AC64154754.asp

http://www.sovereignty.org.uk/features/articles/demog2.html

http://www.cepr.org/press/LM3502_Gardiner.htm

http://www.iht.com/articles/1994/09/24/mrdemo.php