In my opinion, the biggest problem Canadians face as a nation is its low mortality and population growth rate. A low population can largely affect the prosperity of the economy. Canada's economy is not bad, ranking at 11th place in the world by Gross Domestic Product. However, with a larger population, Canada's economy would surely flourish.
Today's babies are tomorrow's employees, since they will enter the work force upon reaching adulthood. Fewer births mean fewer workers in the years ahead to replace the retiring workers. If low birth rates continue, Canada's work force will become smaller. This has the potential ...view middle of the document...
As people grow older, their need for medical services increases. Health care costs have increased for years, posing significant financial burdens for businesses in the United States, where most health care plans are employer-funded, and for the nationalized health care systems in Europe. Low population growth increases the proportion of elderly people, meaning greater demand for expensive medical services.
A low population have low domestic demands. China, with its great population, has their economy surging because of the needs all the people. Thus services and goods production needs to be increased to meet the expectations of the population, which is directly related to the economy.
Aside from economics, when there is a low birth rate, the average age of the country goes up.
Canadian government, feeling some of the economic consequences of low population growth, must try the following. First, promote immigration, which the Canadian government have done very well. They understand that by attracting talents from all over the world will help their economy vastly. Second, encouraging young couples to have more children. Lastly, reforming some social policies such as raising retirement ages or compensating moms who have a lot of children. France, for example, has offered child care subsidies and rewarded families that have at least three children. Since instituting these policies, France now has Europe's second-highest fertility rate.