The Global Inequality Gap, and How It’s Changed Over 200 Years – Visual Capitalist

Posted: December 4, 2019 at 5:43 pm


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For millennia, people have found support and community through defining factors, ranging from age and race to income and education levels.

However, these characteristics are not staticand drastic demographic changes are starting to create powerful ripple effects in the 21st-century economy.

Todays infographic from BlackRock delves into the significant impact that demographics and human rights movements have on global markets. Of the five megatrends explored in this series, demographics are predicted to have the farthest-reaching impact.

Demographics are the characteristics of populations that change over time. These include:

As a result, major demographic trends offer both unique challenges and opportunities for businesses, societies, and investors.

What are the biggest shifts in demographics that the world faces today?

The global population is aging rapidlyas fertility rates decline worldwide, those in the 65 years and older age bracket are steadily increasing in numbers.

As the population continues to age, fewer people are available to sustain the working population. For the first time in recorded history, the number of people in developed nations between 20 to 64 years old is expected to shrink in 2020.

Immigration has been steadily increasing since the turn of the 21st century. Primary migration factors range from the serious (political turmoil) to the hopeful (better job offers).

In particular, areas such as Asia and Europe see much higher movement than others, causing a strain on resources in those regions.

A steadily aging population is slowly shifting the purchasing power to older households. In Japan, for example, half of all current household spending comes from people over 60, compared with 13% of spending from people under 40.

Demographics are the characteristics of people that change over time, whereas social change is the evolution of peoples behaviours or cultural norms over time.

Strong social change movements have often been influenced by demographic changes, including:

Examples of major human rights movements include creating stronger environmental policies and securing womens right to vote.

These changes pose some exciting opportunities for investors, both now and in the near future.

Global healthcare spending is predicted to grow from US$7.7 trillion in 2017 to over US$10 trillion in 2022. To meet the demands of age-related illnesses, companies will need solutions that offer quality care at much lower costsfor patients and an overburdened healthcare system.

With a declining working population, adapting a workforces skill set may be the key to keeping economies afloat.

As automation becomes commonplace, workers will need to develop more advanced skills to stay competitive. Newer economies will need to ensure that automation supports a shrinking workforce, without restricting job and wage growth.

By 2100, over 50% of the world will be living in either India, China, or Africa.

Global policy leadership and sales of education goods and services will be shaped less by issues and needs in the U.S., and more by the issues and needs of Africa, South Asia, and China.

Shannon May, CoFounder of Bridge International Academies

In the future, education and training in these growing regions will be based on skills relevant to the modern workforce and shifting global demographics.

Spending power will continue to migrate to older populations. Global consumer spending from those over 60 years is predicted to nearly double, from US$8 trillion in 2010 to a whopping US$15 trillion in 2020.

Demographics and social changes are the undercurrents of many economic, cultural, and business decisions. They underpin all other megatrends and will significantly influence how the world evolves.

As demographics shift over time, we will see the priorities of economies shift as welland these changes will continue to offer new opportunities for investors to make an impact for the future of a global society.

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The Global Inequality Gap, and How It's Changed Over 200 Years - Visual Capitalist

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December 4th, 2019 at 5:43 pm