Demography can have important economic effects. The United States has an aging population. Explain one economic benefit and one economic cost of an aging population as well as of a population that is very young.

An aging population in the United States can have both economic benefits and costs. One economic benefit is the transfer of wealth from the older generation to the younger generation through inheritance and gifts, promoting investment and consumption. However, an aging population also puts pressure on public finances due to increased demand for social security, Medicare, and long-term care services. On the other hand, a very young population offers the economic benefit of a large future workforce contributing to productivity, innovation, and consumption, potentially leading to a demographic dividend. Nevertheless, a very young population also strains resources in education, childcare, and social services, which may compromise the quality of these services and impact long-term economic growth potential.