Demographic trends from an economist's point of view.

Demographic shifts over time have significant impacts on labor markets, production and consumption patterns, saving and investment, and the overall growth of the economy. Among key shifts in the age composition of the population in the immediate future are slower growth of young workers and those in the key family formation ages, the movement of the baby boomers into their peak spending years and slower growth for prime saving ages. But the most dramatic changes of all will occur when the baby-boom generation begins retiring in large numbers in the second decade of the next century. This will require substantial investment in human and physical capital to facilitate the productivity gains needed to offset the surge in the old-age dependency ratio. Other important demographic trends from an economic point of view include the increase of nontraditional families and the huge variations in growth among various geographic areas.