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The Wrinkling of Rural The Wrinkling of Rural Part 5

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The Wrinkling of Rural. Part 5. The Wrinkling of Rural. DO NOT GO GENTLY INTO THAT GOOD NIGHT. OLD AGE SHOULD BURN AND RAVE AT THE CLOSE OF DAY; RAGE, RAGE AGAINST THE DYING OF THE LIGHT DYLAN THOMAS. Critical Demographics Segment from 2015 to 2030. - PowerPoint PPT Presentation

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Page 1: The Wrinkling of Rural

The Wrinkling of RuralThe Wrinkling of Rural

Part 5

Page 2: The Wrinkling of Rural

The Wrinkling of RuralThe Wrinkling of Rural

DO NOT GO GENTLY INTO THAT GOOD NIGHT.OLD AGE SHOULD BURN AND RAVE AT THE CLOSE OF DAY;RAGE, RAGE AGAINST THE DYING OF THE LIGHTDYLAN THOMAS

Page 3: The Wrinkling of Rural

Critical Demographics Critical Demographics Segment from 2015 to Segment from 2015 to 20302030

• From 2015 to 2030 we will increase our total population of children by (Estimated) 7,352,000 [Children are aged 14 and younger]

• If the current scenario holds true, 80 percent of these children will attend school in 144 metropolitan counties and 181 amenity “hot growth” counties in rural areas.

• During the same period the population of persons aged 65+ will increase 26,200,000 persons

• You do the math

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Rapidly Aging/Fast Rapidly Aging/Fast GrowingGrowing

2

1

3 4

5

6

1

2

3

4

5

Rapidly Aging Fastest Growing

USATODAY4/21/05

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The Old In Modern Human The Old In Modern Human HistoryHistory

Most ecologist and demographers agree that the most significant change to the planet in the 20th Century is the aging of the human species.From the beginning of the modern era until 1900 the total proportion of those over 65 to those under that age remained a constant 5% percent. During the 21st Century – we are headed for the 35% level.

Until the turn of the 19th into the 20th Century, the world population maintained a constant relationship between age segments

Page 6: The Wrinkling of Rural

Percent of the Total Population Percent of the Total Population Aged 65 and Over - 2003Aged 65 and Over - 2003

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And 50 Years in the And 50 Years in the FutureFuture

United Nations Population Bulletin, 2003

Proportion of Total Population Aged 65 years & older

Less developed nations

More developed nations

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Take Home PointsTake Home Points• In 1960 there were 16 workers for every

person on social security in the U.S.• By 2045 there will be 3 workers for every

person on social security (under contemporary scenario)

• By 2050 the world should hit the 34 percent mark for persons 65 and over

• By 2999 we should reach a stable point at 38 percent of the world

Page 9: The Wrinkling of Rural

COND

TIONS TRENDS

KEY ISSUES

Incomes

Age Structure

Birth Rates

Health Care – Elderly - Incomes

Decline

Entitlement

Retirement

Pensions

Page 10: The Wrinkling of Rural

An Aging WorldAn Aging World

About 795,000 persons in the world cross the line from middle age to elderly each month.

The number of elderly in the U.S. increased 12 fold from 1900 – 2000 or 3 million to 42 million. By 2030 about 70 million of our population will be old

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Quick FactsQuick Facts

• Over the next 70 years the world will undergo the greatest demographic change in all its history

• In 2050 in the U.S. there will be 27.1 million children age 5 and under & 78.8 million aged 65 and over

• By 2070 there will be 106 million elderly persons in the United States out of our projected 490 million persons

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Even Quicker FactsEven Quicker Facts

• In 2030 seniors will out number school aged children in 10 states – currently no state has more seniors than children

• By 2030 approx. 26 states will double their population of elderly

• Thirty two percent of the residents in 6 states will be elderly – we want service, not no stinking schools – and we vote early and often

Page 13: The Wrinkling of Rural

The Real StoryThe Real Story

The real story of rural areas is the elderly. In U.S. deep rural communities under 5,000 – one in three persons will be aged 65+ by 2030.

Page 14: The Wrinkling of Rural

Local ImpactLocal ImpactBy 2030 the elderly share of the population will rise to 32 percent of the population of U.S.’ Deep Rural areas.In terms of the total package, we calculate that 40 percent of all public expenditures on the local level will be directed towards elderly support, medical services, and transfer payments. Currently it is 22 percent

Page 15: The Wrinkling of Rural

Presentation Of The Check Presentation Of The Check For The Public Share For For The Public Share For Elderly Health CareElderly Health Care

• Assisted Care Costs• 1987 - 11 billion• 1996 – 70 billion• 2002 – 400 billion• 2015 – 1.2 trillion

• All Health Care• 2003 – 1.67 trillion• 2015 – 2.1 trillion

2005 Health Cost – 17.1 % GNP

Page 16: The Wrinkling of Rural

Why The Great Increase in Why The Great Increase in Health Care Costs?Health Care Costs?

• The last two years of life are the most medically intense for the average American

• The last two years of treatment are not for life extension, but for quality of life & maintenance

• This type of treatment tends to be the most expensive

Page 17: The Wrinkling of Rural

The VictimsThe Victims• Elderly support – if it continues at the

same level it will devastate the following budgets:• Education and education infrastructure• Local infrastructure• Local and some state based transfer

payments for retirement• Local arts, parks, recreation and workforce

development• Medicare, Social Security & Trust Fund

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Most Vulnerable of the Most Vulnerable of the VictimsVictims

U.S. Counties that could have 30% of their population elderly

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Menu of PainMenu of Pain• The current deferred generational red ink

equals $4.5 trillion – pick an option• Increase federal income taxes (69% change)• Increase payroll taxes (95% change)• Decrease discretional federal spending (96%)• Decrease Social Security and Medicare

Benefits• Let the SS fund deplete in 2032 and pay-as-

you-go• Cut education spending

Gokhale & Smetters, 2003

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Opportunities?Opportunities?

In 2030 about 33 percent of all persons aged 70 and over require some form of skilled or assistant term care

About 4.3 million units of new long term care housing must be supplied at an average cost of $7,570 per month (2015 dollars) for assisted care. Even more important, we must recruit 740,000 assisted care and health workers to support this elderly population

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Enter the Baby BoomersEnter the Baby Boomers

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If You Don’t Recognize One of If You Don’t Recognize One of These Pictures – You Are Not These Pictures – You Are Not Baby BoomerBaby Boomer

Baby Boomers Were Born Between 1946 & 1964 In the U.S. Today, Someone Hits Age 50 Every 7 Seconds

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The Age Bulge from 1960 The Age Bulge from 1960 to 2020to 2020

1960 2000

U.S. Census Bureau

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Segments Of the Baby Segments Of the Baby BoomersBoomers

Strugglers Anxious Self ReliantsEnthusiasts Traditionalist

23%

9%

25%

30%13%

TotallyDependent onSoc. Sec. and MedicareDo not plan

to work at all after retirement

Independent, will work part time until they die

Will get by no matter what. Will work part time if need.

During the Baby Boom Cycle – 30 million people will be totally dependent on Transfer payments – Think in terms of 2.4 trillion dollars

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Our Oldest Old – Percent Our Oldest Old – Percent of Population Aged 75+of Population Aged 75+

United Nations2000 - 2001

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Will It Continue?Will It Continue?

0102030405060708090

1970 1980 1990 2000 2010 2020 2030

Expected life term survival rates from 1970 - 2030

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Yes, Survival Rates Will Yes, Survival Rates Will Continue to Increase at a Continue to Increase at a Slow RateSlow Rate

United Nations2000 - 2001

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Projected Population Projected Population Structure For the U.S. Structure For the U.S. 2050205080+

75-7970-7465-6960-6455-5950-5445-4940-4435-3930-3425-2920-2415-1910-14 5-09 0-04

0246810121416 0 2 4 6 8 10 12 14

FemaleMale

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And, Poor CanadaAnd, Poor Canada80+

75-7970-7465-6960-6455-5950-5445-4940-4435-3930-3425-2920-2415-1910-14 5-09 0-04

00.20.40.60.811.21.41.6 0 0.2 0.4 0.6 0.8 1 1.2 1.4 1.6

FemaleMale

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Quick FactsQuick Facts

• In 2025 Europe there will be 2.8 elderly persons per child

• Europe as a whole will shrink by 142 million persons (pop. of France & Italy)

• Japan and New Zealand will be the oldest countries in the world – 15 percent will be over 80

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The Overall ImpactThe Overall Impact• The long gray wave of Baby Boomers

retiring could lead to an all-engulfing economic crisis -- unless we balance the budget, rein in senior entitlements, raise retirement ages, and boost individual and pension savings. Yet politicians of both parties say that most of the urgently necessary reforms are "off the table."

Richard Lewis

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Mobility Issues – Results of Mobility Issues – Results of Cross National StudiesCross National Studies

• One of the few cross-national studies of elderly migration (Rogers, 1998) identified two basic patterns.• One is characterized by amenity or health

motivated, long-distance relocation• The other by intra-community, assistance-

motivated short-distance moves.• This is important because --- next slide

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Elderly & Retirement Elderly & Retirement IssuesIssues

• Elderly services and retooling infrastructure will be a premier opportunity for rural areas

• Requires a complete re-thinking of local development policies

• Perhaps as many as 20 percent of small towns could qualify as retirement destinations

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Births & MarriageBirths & Marriage

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Birth Birth RatesRates

• Data for 2001 birth rates are the lowest ever recorded since records began – total of 4,019,480

• One-third of all live births are to unmarried women, but teen pregnancies are finally declining

• The big decline in births began in 1991

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The Fertility Rate – The Fertility Rate – Number of Live Births Per Number of Live Births Per 1,000 Women1,000 Women

• We peaked in 1957 when the US produced a baby every 7 seconds – a rate of 3.68 per 1000. We freaked about rampant growth

• In 1970 it was 2.48 births per 1,000 and bottomed at 1.74 in 1976

• The baby bust of the 70s was followed by the birth dearth of the 80s

• In 2004 we returned to 2.2 – this is sustainable

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2020thth Century Birth Rates Century Birth Rates

1910 2000

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But, Survival RatesBut, Survival Rates

The Number of Infant Deaths Between 0 – 5 years of age per one thousand births

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Median Age of U.S. Non-Median Age of U.S. Non-Immigrants at First Immigrants at First MarriageMarriage

Waiting for Mr. Perfect

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Some Other FactorsSome Other Factors• We consistently win the divorce Tour de France

each year• The best fertility years for males are age 20 –

24; the median age at first marriage for males in 26.8

• Purposely childless couples have tripled in the last 20 years

• Women in the work place• Globalized attitudes towards wealth and

consumption – no fun with excess children

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Good AdviceGood Advice

“ALWAYS BE NICE TO YOUR CHILDREN BECAUSE THEY ARE THE ONES THAT WILL CHOOSE YOUR REST HOME”Phyllis Diller

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The Future For Our The Future For Our ChildrenChildren

• Big, Blue and Wrinkled All Over• How Old? How Wrinkled? – VERY

• The world tipping point between elderly 65+ and children 0 – 18 will be reached in 2035-2045

• This will is not a a simple trend – it will be forever under the current scenario with a rising life expectancy and low birth rates

• China will go to into decline within 45 years and be profoundly unbalanced towards males

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The Opportunities of Growing The Opportunities of Growing OlderOlder

"Global demographic change is occurring at a rate never seen before and we will need to pay close attention to how our towns respond to the challenges and opportunities of growing older.”

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Dark days are upon me, my husband is dead, I look at the future, I shudder with dread,For my young are all rearing young of their own, And I think of the years and the love that I've known;I'm an old woman now and nature is cruel -- 'Tis her jest to make old age look like a fool.