CHART OF THE DAY: Economist Calls This The 'Spooky Chart Of The Decade'

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Dr. Constantin Gurdgiev, Adjunct Lecturer in Finance at Trinity College, Dublin, has a post up at the True Economics blog with what he calls “the spooky chart of the decade.”

It’s a graph showing the imminent decline of the West’s source of cheap labour — immigrants.

The table plots a country’s dependents as a percentage of the overall working age population over time — in other words, how many old folks the rest of us working stiffs are supporting.

The red line shows the percentage for the developed world, which we’ve long known will face huge costs to support its elderly.

But the green line is the scary part: around 2030, young immigrant workers who’ve flooded into developed nations to provide us with cheap labour will start having to support their own elderly back home.

That means they’ll either be sending a large percentage of their pay back home, or will stop coming to the developed world entirely. 

As Dr. Gurdgiev writes,

“Never say we haven’t told you (Europeans) that abandoning family for the sake of social benefits and improved consumption of holidays is not a good idea, but it is even dafter when one thinks that the sources of cheap labour might just run out pretty soon… in and around 2010-2025…”

chart of the day, dependents as a percentage of the labour force, august 2012

  

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