absolutideas

Does demography matter? What are the reasons of stagnation? Maybe one of them..

written by Mark Sunshine

“Fundamentally, there are only two ways for a nation to have a sustainable increase in GDP. Either it has to have more people in the labor force or it must increase the productivity of each person in the labor force. Because Japan’s labor force hasn’t grown in 16 years it isn’t surprising that its GDP has stagnated. Even worse, because Japan’s work force has grown older in the last 16 years, productivity growth has been anemic at best.

photo by Pickelweasel

Policy makers need to understand that immigration policy is an economic tool to promote everyone’s welfare. As an example, one way that the real estate crisis could be quickly resolved is to allow more immigrants to come into the U.S.; but only if the new residents agree to purchase homes in the U.S. Every year the population of the U.S. grows by approximately 3 million people. Another 3 or 4 million immigrants will suck up excess residential real estate could cure the real estate crisis quickly.”

But only with 100% down payment please! read full article here

Related posts:

1. A Little More Local Color on the Japanese System
2. Lesson from The Great Depression