Will Japan's elderly get burned by 'Abenomics'?

Associate Professor of Economics Tomoki Fujii disagrees that Japan's aged population is getting the short end of the stick under “Abenomics” – Japanese Prime Minister Shinzo Abe's growth strategy. “The elderly benefit most from the social security system, including the healthcare and pension system. Therefore, it is only fair to ask the elderly to share the burden of supporting the social security system,” he reasoned. “This argument is compelling particularly because sizable inequality exists between the current young and elderly generations in terms of the expected net benefits received from the government (pension, medical, and other benefits) minus the tax, social security, and other payments made to the government,” he added. Additionally, he pointed out that the older population will be primary beneficiaries of Abe's pledge to lead efforts towards carving out a “new horizon” for the latest medical technologies, including regenerative medicine and innovative drug development.

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