Immigration and Population Growth
Some developed countries face an ageing crisis. Slow rates of growth in demand and falling ratios of workers to age pensioners are having significant effects on countries such as Japan, Italy and Greece. Australia is fortunate that successive governments have made hard decisions to deal with Australia’s ageing population that have put us in a strong position relative to the rest of the developed world.
KEVIN Rudd wanted a ”Big Australia”. Julia Gillard doesn’t. For once, I agree with Rudd. Big Australia is in the national interest – if we improve management of our shared resources.
What Rudd called Big Australia – a 35.9 million population by 2050 – actually isn’t very big. One ”big” absolute number that’s 40 years away shouldn’t scare us. That number came from Treasury’s recent third Intergenerational Report. Due to the magic of compounding, the latest report’s extra 0.4 percentage-point annual growth generates what seems like a much bigger 2050 number.