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HomeHomework HelpeconomicsFiscal Sustainability

Fiscal Sustainability

Fiscal sustainability in aging societies refers to the capacity of a government to maintain its financial obligations and public services over the long term, despite the increasing economic pressures associated with an aging population, such as rising healthcare costs and pension liabilities. This concept emphasizes the need for balanced budgets and responsible fiscal policies to ensure that resources are available for current and future generations.

intermediate
3 hours
Economics
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Overview

Fiscal sustainability is a critical issue for governments, especially in aging societies where the demand for social services and healthcare is rising. As populations age, the balance between public spending and revenue generation becomes increasingly challenging. Governments must adapt their fiscal...

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Key Terms

Fiscal Policy
Government policies regarding taxation and spending.

Example: Increasing taxes to reduce budget deficits.

Public Debt
Money that a government owes to creditors.

Example: Bonds issued by the government to finance projects.

Demographics
Statistical data relating to the population and particular groups within it.

Example: Age distribution of a country.

Pension System
A system that provides income to individuals after retirement.

Example: Social Security in the United States.

Economic Growth
An increase in the production of goods and services in an economy.

Example: GDP growth over a year.

Sustainability
The ability to be maintained at a certain rate or level.

Example: Sustainable economic practices that do not deplete resources.

Related Topics

Public Finance
Study of how governments manage their revenues and expenditures.
intermediate
Demographic Economics
Explores the economic implications of demographic changes.
intermediate
Social Policy
Focuses on the welfare of individuals and communities.
intermediate

Key Concepts

Aging PopulationPublic DebtSocial SecurityEconomic Growth