Abstract: Promoting the development of the silver economy should not merely be seen as a short-term measure to bolster the macroeconomy. The fact that China has entered an era of population decline and rapid aging makes the silver economy a mainstream industry field for the future. Studying the relationship between aging and economic growth on a broader scale, especially exploring the issues of developing the silver economy, should become a mainstream area of economic theory and policy research.
China’s new demographic normal, manifested mainly by shrinking total population, accelerated decrease in the working-age population, and intensified population aging, creates three potential gaps in economic growth, namely, growth drivers, productivity, and total demand. The development of the silver economy can offer an industrial solution to fill these growth gaps from both supply and demand sides. The stage of development China has already achieved is also sufficient to support a major industry “push” on both the supply and demand sides simultaneously.
Essentially, the silver economy presents a textbook case where market mechanisms and industrial policies should combine force to produce the optimal outcomes. Industrial policies in this field should, beyond general guidance and encouragement, be more forward looking to lead the direction of technological innovation in the silver economy, so that the development of the silver economy meets aging-induced needs both now and in the future, and incorporate more elements of social policy.
The consumption capability and willingness of the elderly population are significantly lower compared to other age groups. Given China’s characteristic of “getting old before getting rich,” at least for a certain period, the consumption capability and willingness of the population will run counter to the trend of population pyramid evolution (age structure changes). Developing the silver economy, aimed at improving the welfare of the elderly and targeting the needs of the elderly and related demands, will also be the key to breaking the “population pyramid paradox” and resolving the contradiction between household consumption demand and changes in population structure.
