Final answer:
An aging population can lead to increased consumer spending but also strain social welfare systems. A very young population can contribute to a strong workforce but may strain social welfare programs.
Step-by-step explanation:
An economic benefit of an aging population is the potential for increased consumer spending. As people age and retire, they may have more disposable income to spend on goods and services, which can stimulate economic growth. For example, industries that cater to the needs of older adults, such as healthcare, leisure, and travel, can experience a surge in demand.
An economic cost of an aging population is the strain it can put on social welfare systems. As the elderly population increases, there is a greater demand for healthcare, pension programs, and long-term care services. These programs can be costly to fund and maintain, leading to increased government spending and potentially higher taxes for working-age individuals.
Similarly, a very young population can also have economic benefits and costs. One economic benefit is the potential for a large workforce. A young population can contribute to a strong labor force, leading to economic productivity and growth. Additionally, a young population may have higher birth rates, which can support economic expansion and innovation.
However, a population that is very young can also present economic challenges. For example, a high dependency ratio, where a large proportion of the population is composed of children and dependents, can strain social welfare programs and limit economic resources. Governments may have to allocate significant resources to provide healthcare, education, and other social services to support the needs of a young population.