Many developed nations have a Baby Boomer generation, a particularly large age group ranging from late 40s to early 50s.  While the bump in population is fine now, the problem lies in what happens after the Boomers retire.  With less people in the age bracket below the Boomers, the dependency ratio of countries like Canada will jump.

However, aging populations are even more damaging to countries like China, who, despite their tremendous economic growth, is still technically developing and relatively poor.
A recent blog on the National Public Radio, highlights a similar, albeit mirrored, situation. China’s infamous One-Child Policy, doesn’t lead to a large group of elderly Boomers, but rather a small group of young adults to care for them.

However, as a poorer nation, China does not have the safety net that most developed nations are able to provide their elderly with.  In an attempt to quell the looming problem, China has relaxed the One-Child Policy.

The situation in China shows how government intervention disrupts the natural equilibrium of populations and the market.

Image from : http://www.statcan.gc.ca/edu/power-pouvoir/ch1/examples-exemples/5214854-eng.htm