The Japan Syndrome

The biggest lesson the country may yet teach the world is about the growth-sapping effects of ageing
The Japan syndrome


As usual, "The Economist" highlights dark aspect of the Japanese economy, and this time Japan's ageing population. It says "Unless Japan takes dramatic steps to re-energise its shrinking, greying workforce, its economy will suffer".

Do you agree ?

IMO, nonstop population growth is about as wrongheaded as the Iraq War or market fundamentalism. And there's something wrong about capitalism's need for constant growth.
Population growth can't be infinite. A growing population will have its own problems-economic, social and ecological, and faith in future technology to solve all such problems is unrealistic. Otoh, having a smaller population can be beneficial. Japan has a pop. of 123 million although it's just the size of California, which has a population of only 35 million. Despite that smaller population, California has what would be the 8th largest economy in the world if it was a country. This is just a simple comparison but I think it shows that Japan shouldn't be afraid of a smaller pop. Japan could still have a respectable economy. There would be dislocation problems along the way but I think the country would adjust. Some of the fiscal deficit may be relieved by the extremely high inheritance tax rate that will transfer wealth from households to the government as the population shrinks, and standard of living may rise if GDP doesn't shrink as fast as the populaton does. Cities would be less congested and tourist spots less crowded. Japan could end up as the Switzerland of Asia, IF it resolves its differences with neighbouring countries.

It seems to me the biggest lesson Japan could teach the world is the folly of Keynesian economics.

Mike Cash said:

It seems to me the biggest lesson Japan could teach the world is the folly of Keynesian economics.

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In other words, the biggest lesson Japan indicated is the folly of neoliberal money capitalism spread across the West.

Astroboy said:

In other words, the biggest lesson Japan indicated is the folly of neoliberal money capitalism spread across the West.

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Plus, the folloy of Euro common currency system.

German Chancellor Angela Merkel said the prospect of serial European bailouts was ﾂ"exceptionally serious,ﾂ"

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Bloomberg - Are you a robot?

The sun is hot.

In other words, the sun is cold.

^ What do you mean??

I think these articles are highly indicative of Japan's global competitiveness.

Bloomberg - Are you a robot?

Bloomberg - Are you a robot?

Astroboy said:

The biggest lesson the country may yet teach the world is about the growth-sapping effects of ageing
The Japan syndrome

As usual, "The Economist" highlights dark aspect of the Japanese economy, and this time Japan's ageing population. It says "Unless Japan takes dramatic steps to re-energise its shrinking, greying workforce, its economy will suffer".
Do you agree ?

Click to expand...

Yes and No. Yes, the aging population is not always a good thing. But there are steps Japan can do to get out of it. For expample, make it easier for working women to get access to child care. That is what France did. Also reform the immigration system. That is what Japan is doing. Together, this problem can be alleviated. That is not to say that the population must grow ad infinitum. But the decline can be stopped.

I am not surprised that the magazine highlighted this problem. Most of the "Anglo-American-Ozzie" press loves to do so. Korea, Singapore and many nations in Europe also have a very great aging problem. So does China. Yet they are hardly in the news. Why is that? Because, I believe, Japan and Germany were on the wrong side during WWII, yet we beat the crap out of them economically after the war. This is their form of revenge.

I have not changed my viewpoint that regardless of how "bleak" Japan may seem, our future is better than many other developed nations, and especially better than the United States which, as I have just found a buyer for my condo, I can leave soon. Thank God!

hsakakibara1 said:

Yes and No. Yes, the aging population is not always a good thing. But there are steps Japan can do to get out of it. For expample, make it easier for working women to get access to child care. That is what France did. Also reform the immigration system. That is what Japan is doing.

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Japan is doing these things? Really? Have been here 12 years, and any reforms in those 2 items have been incredibly, woefully, painfully slow. Does Japan need to make them? Yes. Is it taking the necessary steps? No.

Dogen Z said:

IMO, nonstop population growth is about as wrongheaded as the Iraq War or market fundamentalism. And there's something wrong about capitalism's need for constant growth.
Population growth can't be infinite. A growing population will have its own problems-economic, social and ecological, and faith in future technology to solve all such problems is unrealistic. Otoh, having a smaller population can be beneficial. Japan has a pop. of 123 million although it's just the size of California, which has a population of only 35 million. Despite that smaller population, California has what would be the 8th largest economy in the world if it was a country. This is just a simple comparison but I think it shows that Japan shouldn't be afraid of a smaller pop. Japan could still have a respectable economy. There would be dislocation problems along the way but I think the country would adjust. Some of the fiscal deficit may be relieved by the extremely high inheritance tax rate that will transfer wealth from households to the government as the population shrinks, and standard of living may rise if GDP doesn't shrink as fast as the populaton does. Cities would be less congested and tourist spots less crowded. Japan could end up as the Switzerland of Asia, IF it resolves its differences with neighbouring countries.

Click to expand...

Who said that Japan has a population of 123 million??? It is 127 million as of the latest statistics. Please see the link below.

http://www.japantoday.com/category/national/view/japans-population-falls-for-1st-time-in-3-yrs

Glenski said:

Japan is doing these things? Really? Have been here 12 years, and any reforms in those 2 items have been incredibly, woefully, painfully slow. Does Japan need to make them? Yes. Is it taking the necessary steps? No.

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Then look again.

http://search.japantimes.co.jp/cgi-bin/nn20101201a6.html

Our Demographic Problem

America is in a downward spiral. I am outta here. However this does not mean that I think things in Japan are perfect. We have major problems that we need to tackle. The biggest problems are 1. the declining population and 2. deflation.
As for 1. the declining population, France had a simillar problem. They were able to tackle it by having nurseries affordable by most everybody. They also adopted a more progressive immigration policy.
In Japan many people believe that we have enough nurseries. This is far from true. We need at least triple the number of times or more. We also need our companies to allow their employees to be able to take family leaves of absences. In this respect many Western nations are ahead of us. We need to adopt this measure. And such leaves of absences should be applicable to both men as well as women.
We also need to reform our immigration system. It is true that the system has become much more leanient than in previous years. However it is still too strict. A country such as Japan sould be naturalizing at least 100,000 people per year. Instead we naturalize a miniscual 15-16,000. This is ridiculously small.For example, if we want foreign nurses and other medical professionals, it is really necessary for them to take the necessary qualification exams in Japanese? Why can't they take these exams in English and be allowed to take a Japanese language proficiency exam, such as the JPLT, with the goal of level 3 or higher?
There are many people in this world that would love to live in Japan. We should afford them the chance to do so and to allow them to become productive citizens here. Reform of the immigration system, as well as stronger anti-discriminatory laws, are steps we can take to help them as well as better Japan.

My goodness! Are you in this thread spreading your doom and gloom about America? Just move already we all know that you believe America will collapse yesterday and that you are moving to another country... well at least you have been posting that for 2 years... but now that you have sold your condo, or so you say, then you have no reason to stay!

So from all of us poor unwitting saps still here in America.... so long, sionara, etc etc... JUST GO!

Trust me there is a line of people waiting for your job.

I thought this was a thread on the Japanese syndrome not why YOU hate America... thats a different thread. ☝

By the way why should Japan naturalize people like you? Do you think they want your pesimistic attitude in their country. Maybe one reason they don't naturalize more people is because they have their own unemployment and housing problems... but I guess you think they should allow who ever into their country right?

Lastly when you speak of a country that you are not a citizen of or live in do not take a possesive form (we) when speaking of it... your not in yet bucko.

Japan is ranked as number 3 in purchasing power, and #2 in gold reserves in the world.
(globalfirepower.com)
This is a nation with NO natural resources to speak of.
That in itself is nothing short of amazing, how can they be in trouble?
How did they get all that money? Also too, gold has steadily rose, meaning their gold reserves are becoming more valuable every day.

BTW, the US is 13th in gold reserves, just under Turkey.

Yet the US has the top spot of purchasing power.

Go figure on that.