Problems caused by Under population - Australia

For a named country you have studied, describe and explain the problems caused by under-population.

->Though USA and Australia are not very different in size, Australia has fewer than 25 million people compared to 300 million people in USA. To develop the country economically, Australia started to attract migrants from other countries which raised the Population to 23 million from 3.7 million in 1901.

->Low level of Production and low value of exports – The Oil production is 4.82 billion barrels per day compared to 9.02 billion barrels per day. The value of exports is US$258.8 billion compared to US$1.564 trillion.

->Shortage of workers:  Due to low fertility and replacement rates and with ageing population             retiring, this problem is noticed and has led to lower optimum productivity. Boston Consulting Group has released a report predicting a shortfall of 2.3 million workers by 2030.

->Resources underused:  Northern territory is rich with energy, agriculture, business and other industries, and has vibrant and growing communities but remains under-utilised relative to the rest of Australia, despite its natural, geographic and strategic assets as it is not possible to exploit all resources and large areas of outback

undeveloped/underutilised.

->High taxes: Australia's tax take from individuals and businesses is one of the highest in the developed world. Since there are less people paying tax and 43% of the labour force will be due to retire in next 20 years, high taxes are levied on the lower and middle income earners and higher income earners are thinking of overseas relocation.

Rising conflicts: With Australia’s labour shortage, it is likely to be more attractive to foreign immigrants. If too many come in, then locals may feel that their culture is threatened and as people of various cultures and countries come together, many of them can’t speak English and therefore causes problems in many areas of Sydney, Melbourne and Adelaide.

Closure of public services:  Schools, hospitals and Public transport links may close because there are not enough people to support them.It is unlikely that new transport systems will develop as there is not enough people to support them. This increases people’s reliance on cars.

Other problems like lack of government income, small market for goods and services are also the result of under population in a country like Australia