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Curious how all these advanced economies will deal with structural deflation when there is decreasing customer demand and consumption for most types of goods.
by jankyxenon 3y ago
Curious how all these advanced economies will deal with structural deflation when there is decreasing customer demand and consumption for most types of goods.
Example - do house prices start falling?
- sn0wf1re 3y agoTypically Japan is used as an example. Rural houses there are extremely cheap these days. Urban housing is still expensive.
- mitthrowaway2 3y agoTo expand on this, housing in first-tier cities like Tokyo, Osaka, and Fukuoka is quite expensive (although not bonkers like it's gotten in Canada/Australia/etc). Housing in smaller second- and third-tier cities is very affordable, while still maintaining access to good hospitals, public transit, jobs, and so on. Rural housing is practically free aside from the cost of renovation.
- bryanlarsen 3y agoHousing everywhere in Japan is basically free aside from the cost of renovation + the cost of the land. Houses are considered to be disposable there, you're expected to tear it down and build a new one when you buy one, so they are priced accordingly. The difference is that land in Tokyo etc is expensive.
- huytersd 3y agoBut why would you? It seems like most young people with no money could just stay for free.
- chaostheory 3y agoBecause it’s the (outdated) law due to earthquakes. Building and materials have gotten much better since the original laws were passed.
- huytersd 3y agoAre you required by law to build a new house? What if the house was just built a year ago.
- mitthrowaway2 3y agoOld houses in rural areas often need a lot of care due to their age and condition. They may have sat empty for several years and suffered damage from a lack of maintenance. Also if they're cheap postwar construction, they may not be very earthquake safe. If they're older traditional architecture, they're probably ok but still probably need a lot of TLC.
- jankyxenon 3y agoMakes sense - if I look at the overall Japan numbers, they look pretty flat (seems like foreign nationals are plugging some of the decline). Curious what happens when there's a real demographic nosedive.
- jseliger 3y agoUrban housing is still expensive Not compared to most countries: https://www.sightline.org/2021/03/25/yes-other-countries-do-housing-better-case-1-japan/ https://www.sightline.org/2021/03/25/yes-other-countries-do-..., https://www.nytimes.com/2023/09/11/opinion/editorials/tokyo-housing.html https://www.nytimes.com/2023/09/11/opinion/editorials/tokyo-...
- galdosdi 3y agoDeflation in goods and real estate, etc, but inflation in services, especially eldercare and healthcare.
- monsecchris 3y agoThe uk government has decided to import millions of people and hope that it creates good outcomes. So far it’s difficult to find a measure that has improved.
- chaostheory 3y agoIt’s because the UK is very new at it compared to say the US and Canada. IMO it’s still likely better than losing your adult working population though. We’ll see how the UK fares compared to Germany in the coming years