Michael, just one of the many reasons that Japan should base its recovery on domestic increase of aggregate demand. I should also mention that Japan would be greatly helped if they had an encouraging emigration policy, but that is an anathema to them, so, they'll have to find a way to increase family size (using the same patriotic advertising, a family of four is what your country needs ...). That actually works some times. In Israel, after independence, Ben Gurion, recognizing the need to establish a critical mass actually had a law (still on the book, I believe) encouraging larger families. After a nation is decimated by a full one third, drastic measures are required. Maybe Japan can set in motion a trend that will reverse the lopsided society of elderlies, and the birth rate of less than 2 children per woman.
Zeev |
