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> Being temporary just means that real GDP per capita will eventually reach it's previous level - a temporary Malthusian nightmare rather than a permanent one.
by maratd 14y ago
> Being temporary just means that real GDP per capita will eventually reach it's previous level - a temporary Malthusian nightmare rather than a permanent one.
Human beings aren't static units of consumption and production.
Most productivity gains which result in real GDP per capita growth can only manifest themselves at specific economies of scale. Economies of scale realized after specific demand levels are reached as a result of growing populations.
The pressures which lead to innovation are directly tied to the pressures caused by additional demand and insufficient supply.
Can you name a single country with a decreasing population and a growing GDP? Or even a growing per capita GDP?
- RyanZAG 14y agoRemember what this article is about? Japan. Population 2005 127,767,994 +0.7% 2010 128,057,352 +0.2% 2012 (est.) 127,530,000 −0.4% Per Capita GDP continues to rise. http://www.indexmundi.com/g/g.aspx?c=ja&v=67 http://www.indexmundi.com/g/g.aspx?c=ja&v=67 EDIT: This is, of course, also not related to inflation, as Japan has had deflation for years. http://www.rateinflation.com/inflation-rate/japan-historical-inflation-rate http://www.rateinflation.com/inflation-rate/japan-historical... So perhaps I am not wrong on a profound level after all, considering my views are echoed by reality? Just throwing it out there...
- maratd 14y agoWhy are you using purchasing power parity data? Japanese people don't live in America. They live in Japan. You are introducing local factors from the US into the data. According to this: https://www.google.com/publicdata/explore?ds=d5bncppjof8f9_&met_y=sp_pop_totl&idim=country:JPN&dl=en&hl=en&q=japan%27s%20population https://www.google.com/publicdata/explore?ds=d5bncppjof8f9_&... Japan's population begins to stagnate around 1996 or so. Use this chart and restrict the data from 1996 to today. http://www.tradingeconomics.com/japan/gdp-per-capita-at-current-prices-imf-data.html http://www.tradingeconomics.com/japan/gdp-per-capita-at-curr... Now use this chart: http://www.tradingeconomics.com/japan/gdp-growth-annual http://www.tradingeconomics.com/japan/gdp-growth-annual Again, restrict from 1996 and onward. Then select trend. A nice downward line trending toward 0. The true effects of a stagnating population won't be felt for years. As the article notes, Japan's population is aging rapidly. That means fewer and fewer productive members.