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Politics : American Presidential Politics and foreign affairs

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To: DuckTapeSunroof who wrote (32860)2/17/2009 6:43:39 PM
From: TimF  Read Replies (2) of 71588
 
But why is Japan so export dependent? Well here you will find explanations to suit every palate, but if I can just add my 5 cents worth, I would say that the fact that Japan's population currently has the highest median age on the planet is not simply an incidental correlate (nor is the fact that Germany has the second highest median age and is currently struggling with the same problem simply another incidental detail). Basically years of ultra low fertility coupled with relatively unfriendly immigration attitudes means that the median ages of the Japanese and German population (at 43) are now the highest on the planet. Previously it was assumed that we wouldn't see much in the way of economic consequences from all this till much later in the century, but now, to me at least, it is obvious those consequences are already here.

Not just that, also Japan had for decades tried to push exports and reduce imports, with methods from manipulating the currency, to direct import barriers (these at least have come down a lot), to subtle indirect import barriers where the government bans, or regulates, or subsidizing, or taxing something other than imports and exports, but which has an effect of encouraging exports or discouraging imports.

Those policies are politically hard to change, but probably not nearly as hard as changing the serious demographic issues.
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