Japan’s ageing population problem might be the worse in the world, but it’s one that all developed economies are facing. The problem seems so intractable that Yale economist Yusuke Narita’s suggestion that the elderly commit mass suicide made international headlines. That is not a serious policy suggestion, but radical measures are needed. Charles Goodhart argues that instead of the state financing the day to day lives of retirees via a state pension, it should instead prioritise financing the increasing medical care costs of the elderly.

Japan has the highest proportion of elderly people in the world, with 29% of the population being over 65. These numbers, combined with an increasing life expectancy, bring along a host of problems. Older people tend to need more medical care, which is both expensive and requires a lot of human resources. In most developed countries, the state provides a large part of the support needed, meaning an increasingly smaller number of young people in employment foot the bill via taxes. This raises issues about economic growth, but perhaps more importantly, intergenerational justice.