The effects of transformational leadership on the aging population in Australia

Continuous Changes in the Environment and the Necessity of Transformational Leadership

Continuous changes in the environment in indicates the necessity of utilizing transformational leadership theory to create a transformational leader how to have the knowledge and skills to create changes in an organization and influence the subordinate to change to achieve the highest performance. An example of a leader with transformational leadership skills is Glen Palin the director of John Holland. Studies indicate that transformational leadership theory and society sustainability positively impact the high probability of a person to become social capitalists. The efficiency of transformational leadership theory is of great significance for social entrepreneurship mostly when the society of the sustainability is at its lowest, therefore, indicating an interaction between societal sustainability and cultural leadership styles.

The Challenges Faced by Governments in Maintaining Economic Stability

Handling the steadiness between economic expenditure and income has always been a great task for governments in the globe. The case is mostly faced as a result of demographic changes. In the past decades, the Australian government was faced with the issue of high rate of dependent children in the population that has been experienced as a result of high population growth. The government experienced the high and increasing burden of fully catering the needs of the ever-growing population of young people (Kark, Shamir & Chen, 2003). To reduce the burden, the government came up with the policy of discouraging families from having many children. In the present days, the issues have changed, the workforce is relatively decreasing and most government, especially the Australian government is being faced by the challenge on how the economy can be able to cater for the needs of the dependent elderly population.

The Impact of the Aging Population on Per Capita Output and Standard of Living

The aging population leads to a decline in the per capita output. This indicates that most households are finding it hard to meet their consumption needs. With the number of the aging population becoming acute, they find themselves lacking being able to fully cater to their needs hence indicating the lower standard of living. With the population experiencing such situation, it is n indication of a important stage backward that differs with the developments in well-being improvements that have been achieved in the past three to four decades.

The Impact of the Aging Population on National Saving

Another way that the unemployed aging population affects the economy of a country is through national saving. If the policy of a nation stagnates, the saving rate of a nation is expected to fall in the next four to five decades to come because of two primary reasons. The first reason is that the increase in the number of elderly population indicates a relative increase in the number of assets that are going to be depleted, hence leading to a decrease in the total private saving. Secondly, the main national transfer program, which is health programs and social security, is expected to be revealed in favor of the aging population (Kark, Shamir & Chen, 2003). It is very evident that a large number of national spending goes to the young through public education spending.

Addressing the Issue of the Aging Population through Human Investment

With the increase in the aging population, it is clearly evident that there will be no enough resources to cater for the increasingly dependent population. The government, therefore, needs to adopt measures such as increasing investment in human capital. Investment in training and education will provide higher rates of returns in the future to both the individual and the economy. it will also lead to the optimization of any investment that will be made on the equipment and machines used.

Investing in Human Capital to Boost Productivity and Competitiveness

To address the issue of the aging population, the government needs to focus more to investing in human investment so that their skills, expertise, and training match those required in the economic areas of the growth of the economy. The government needs to invest in training and education, they have to create a better trained and workers how to have better skills and knowledge (Charbonneau et al., 2011). They have to create more capital intensive and more advanced production techniques of returns that will be used to achieve higher levels of productivity (Muralidharan & Pathak, 2018).. If the technique is applied with the employment of more highly skilled and more educated workers, how are able to use the present resources effectively, the government can be able to raise productivity hence being able to provide for its aging population.

Utilizing the Elderly Population for Economic Growth and Creativity

The government needs to create a comparative advantage to ensure that Australia is constantly growing as an economy and that it is operating efficiently within its domestic markets and at the same time maintaining competitiveness in the international economy. The economy can also the local talents of the elderly population and use their high level of creativeness and creativity (Kanungo, 1988). The knowledge and ability of the elderly population can be used to motivate young individuals to work hard and by creating great ambitions at the community and personal levels.

Including the Elderly Population in Independent and Innovative Thinking

The transformational theory indicates that for the economy to maintain sustained investment in technological and scientific research, organizations have to invest in independent thinkers, which included the elderly populations and those in academia (Fusch & Fusch, 2018). The elderly in the community with long life experience and technical expertise can be solicited and tapped or can also be consulted for the purpose of ensuring that they are considered in employment. The elderly individuals can be used as a vital area where a pool of talents can be drawn from. Leaders are therefore required to use beyond party and political loyalties for them to create a promising future for the aging population.