Japans aging crisis

1.) According to the article, what are the two fundamental aspects of Japan's aging crisis?

There are two fundamental aspects behind Japan’s aging population. One aspect is the increase in the proportion of the elderly in the total population. The other is the slower growth of the population, arising directly from the declining fertility rate. The former affects Japan’s economic performance by increasing the social security burden and benefits. The latter has a direct impact on economic growth by reducing the labor force, which is a major factor in production.

2.) By 2030, what percentage of the Japanese population will be elderly dependents (aged 65+)? 

By 2030, one in every three people will be 65 or older, and one in five people 75-plus years old

3.) What is the direct economic impact of Japan's aging population?

A rapidly aging population and shrinking labour force are hampering growth,” warned the International Monetary Foundation in its latest country report on Japan. The IMF also calculated that the impact of aging could drag down Japan’s average annual GDP growth by 1 percentage point over the next three decades.

4.) How is the Japanese government attempting to address the labor shortages?

The causal effect of aging is leaving its mark on the macroeconomy of Japan, especially the labor force and capital accumulation. Due to the nation’s aging and shrinking population, there is an increased need to address the labor shortage. People eventually retire and leave the workforce as they start aging, and at present, there are not enough young people in Japan to fill this vacuum owing to the decline in the fertility rate as well.