Problems in Japan
 

It should be obvious that this is a direct challenge to moorobot aimed at one of his primary examples of how Government intervention and redistribution of wealth can lead to long term stability and prosperity. The main numbers that concern me the most about Japan's future.
Budget:
Revenues: $1.429 trillion
Expenditures: $1.775 trillion
As of 2005 they are spending nearly 25% more than they are collecting in revenue, which leads them to a
Public debt: 170% of GDP.
One day they will either have to pay this debt, and when that day comes this number - 60% - will take on enourmous meaning. Why? Because Japan currently imports over 60% of its population's caloric intake.

Edit: my source for these numbers. source

Re: Problems in Japan
 

I think that we might be seeing some of this...

http://img472.imageshack.us/img472/723/inbf3lj.jpg

Re: Problems in Japan
 

The problem is alot worse because they have the worst demographic crisis in the industrial world and they allow almost zero immigration.

Re: Problems in Japan
 

[ QUOTE ]
The problem is alot worse because they have the worst demographic crisis in the industrial world and they allow almost zero immigration.

[/ QUOTE ]
Can you explain the demographic crisis please? Thanks.

Re: Problems in Japan
 

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[ QUOTE ]
The problem is alot worse because they have the worst demographic crisis in the industrial world and they allow almost zero immigration.

[/ QUOTE ]
Can you explain the demographic crisis please? Thanks.

[/ QUOTE ]

I think what he is referring to is a rapidly "ageing" population.

Re: Problems in Japan
 

[ QUOTE ]
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[ QUOTE ]
The problem is alot worse because they have the worst demographic crisis in the industrial world and they allow almost zero immigration.

[/ QUOTE ]
Can you explain the demographic crisis please? Thanks.

[/ QUOTE ]

I think what he is referring to is a rapidly "ageing" population.

[/ QUOTE ]

Which is resulting in negative population growth. They are going to lose 8 million residents by 2020.

Re: Problems in Japan
 

Thanks.

Re: Problems in Japan
 

[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
The problem is alot worse because they have the worst demographic crisis in the industrial world and they allow almost zero immigration.

[/ QUOTE ]
Can you explain the demographic crisis please? Thanks.

[/ QUOTE ]

I think what he is referring to is a rapidly "ageing" population.

[/ QUOTE ]

Which is resulting in negative population growth. They are going to lose 8 million residents by 2020.

[/ QUOTE ]

From a purely economic perspective, is this a bad thing?

If the United States were to lose a comparable percentage of its population due to negative population growth, would this help or hurt our economy?

Edit: Those aren't rhetorical questions, I really am curious as to the economic effects of a country losing that much population.

Re: Problems in Japan
 

[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
The problem is alot worse because they have the worst demographic crisis in the industrial world and they allow almost zero immigration.

[/ QUOTE ]
Can you explain the demographic crisis please? Thanks.

[/ QUOTE ]

I think what he is referring to is a rapidly "ageing" population.

[/ QUOTE ]

Which is resulting in negative population growth. They are going to lose 8 million residents by 2020.

[/ QUOTE ]

From a purely economic perspective, is this a bad thing?

If the United States were to lose a comparable percentage of its population due to negative population growth, would this help or hurt our economy?

Edit: Those aren't rhetorical questions, I really am curious as to the economic effects of a country losing that much population.

[/ QUOTE ]

The problem is that fewer individuals will mean a smaller GDP (overgenerlization and over simplification) and that means their debt as a % of GDP will increase, further hastening the point that they cannot repay their loans and can no longer provide benefits at any level for their citizens.

Re: Problems in Japan
 

[ QUOTE ]
It should be obvious that this is a direct challenge to moorobot aimed at one of his primary examples of how Government intervention and redistribution of wealth can lead to long term stability and prosperity. The main numbers that concern me the most about Japan's future.
Budget:
Revenues: $1.429 trillion
Expenditures: $1.775 trillion
As of 2005 they are spending nearly 25% more than they are collecting in revenue, which leads them to a
Public debt: 170% of GDP.
One day they will either have to pay this debt, and when that day comes this number - 60% - will take on enourmous meaning. Why? Because Japan currently imports over 60% of its population's caloric intake.

Edit: my source for these numbers. source

[/ QUOTE ]

The real question is: does it concern the current politicians and central bankers.