explain how a declining population might affect canada's economy and lifestyles.consider such areas as governm

Question

explain how a declining population might affect canada's economy and lifestyles.consider such areas as government priporities,consumer spending,the role played by economic growth in our society, and environmental demands.

Answer 1

You can still have economic growth provided that the population decline is slow (1% a year, say). But of course it means less overall growth for any given rate of per capita growth, and it's per capita growth we all really want.

Decline is quite expensive in some respects, for example schools. Imagine a fee paying school for the moment. If a school is designed for an intake of 40 pupils per year and population declines to where it's only getting 25 new pupils per year of entry, the fees are only 5/8 of what they were. But they need nearly as many teachers and maintenance of classrooms as before, so costs are about 7/8 of what they were. The economics are unfavourable. The principle applies in the same way to non-fee-paying schools even though the accountancy is different. It also applies to other public services such as care for the elderly and hospitals -- a high proportion of costs is what economists call "fixed costs", ones with a "low short-run elasticity of supply".

In truth, the decline would likely be uneven. Cities with relatively thriving economies such as Vancouver would still be growing. The pinch would, I forecast, be felt most acutely in rural areas and in the Atlantic Provinces. You would get there the spiral of decline, neglect, closure and reduction of both private and public services, vandalism, emotional depression and outmigration of all but the elederly that you can already see in old villages in many parts of Europe e.g. the Western Isles of Scotland, parts of inland Crete, parts of the Alentejo in Portugal.

Answer 2

It will reduce government spending and decrease the quality of life in Canada in the long run.

With the poor climate, Canada is going to have a tough time in the age where people are not as restrained by natural resources.