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Because for some reason many commentators find it perfectly reasonable to use absolute GDP growth as a metric for comparing Japan to America, ignoring the fact
by logicchains 10y ago
Because for some reason many commentators find it perfectly reasonable to use absolute GDP growth as a metric for comparing Japan to America, ignoring the fact that America's population is growing at around 3% while Japan's population growth is around 0% or negative (which means all things being equal one'd expect America's GDP growth to be around 3% higher). In terms of GDP growth per capita, which is the metric that actually matters when comparing standard of living, Japan hasn't done so badly.
http://www.forbes.com/sites/timworstall/2014/09/05/japan-is-one-of-the-best-performing-economies-of-the-last-decade/#4ee7c8622b20 http://www.forbes.com/sites/timworstall/2014/09/05/japan-is-...
- nabla9 10y agoJapanese government debt to GDP ratio is 229%. Japanese government has kept lights on with 15 years of constant deficit. Fortunately most of this debt is internal and in local currency (no fear of hyperinflation). But Japanese are getting old. In a few years Japanese insurance companies and Japanese savers turn from net buyers of government debt and stocks into net sellers. It's interesting to see what happens then.
- nojvek 10y agoUS has a good stream of immigrants coming in. Last I heard immigrating to Japan is a lot tougher. I wonder why the Japanese govt isn't opening the gates up to keep the population growth of young people at a steady level
- ianai 10y agoReally good point. Usually metrics are compared "per capita" in macroeconomics.