It's hard to imagine a change of government will lead to measures that have a real impact on the economy. Behind the deflation is a structural problem -- a shrinking population with a low birthrate. This problem won't go away.

Quote of the Day Dec. 16, 2012 - 06:46AM JST ( 7 )

Kenji Shiomura, strategist at Daiwa Securities, saying Japan’s problems will remain whoever comes out on top in Sunday’s election. (AFP)

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7 Comments

2

semperfiDec. 16, 2012 - 07:35AM JST

Well there are may countries with small populations that are economically solvent - like Switzerland, Canada, New Zealnad to name a few - . . . . . . . . .The real 'STRUCTURAL PROBLEM" in Japan is the 'AMAKUDARI SYSTEM" and the top heavy bureaucracy that really runs the country . . . . . .So, the challenge is how to create a revolution-from within, and estabilish a new structure of governing that is ACCOUNTABLE TO THE PEOPLE - - and not run by indifferent, incompetent, self-serving bureaucrats . . .
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JeffLeeDec. 16, 2012 - 09:20AM JST

For once I agree with semperfi. The "best countries to be born" were all countries with small and even shrinking populations, according to a recent finding by EIU. Low birthrates lead to prosperity, not doom and gloom, history tells us.
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some14someDec. 16, 2012 - 06:11PM JST

a shrinking population with a low birthrate. This problem won't go away.

why? what's so difficult about it? one word answer: dysfunctional.
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gaijinfoDec. 16, 2012 - 08:25PM JST

Low birthrates lead to prosperity, not doom and gloom, history tells us.

Actually, low birthrates, high birthrates, medium birthrates have nothing to do with prosperity. More people = more demand = more production. Less people = less production = less demand. It all works itself out.

The naturally increasing production and lengthening of the capital structure of ANY post industrial economy will FAR OUTSTRIP any natural decline in birthrate.

The ONLY thing that threatens the prosperity of ANY society is a dysfunctional, fat fingered government that regulates and taxes the citizens to death.

In ANY economy, ALL economic disruptions and problems can be traced DIRECTLY to government involvement.
1

John BeckerDec. 16, 2012 - 11:23PM JST

In ANY economy, ALL economic disruptions and problems can be traced DIRECTLY to government involvement.

The stock market crash of 1929 disagrees with you.
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Rick KisaDec. 17, 2012 - 02:14AM JST

I think the main problem at hand apart from teh economy (which is global) is nuclear energy policy, and lack of leadership, the role of constantly changing governments, nuclear village, etc ...let us not divert issues
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FrungyDec. 17, 2012 - 02:51AM JST

Semperfi has a good point, but he's just scratched the surface. The problem with Japan is fundamentally cultural, particularly the notion of "harmony". While it has many positive manifestations the negative ones include the amakudari system where not rocking the boat (i.e. being harmonious) with the industries you're supposed to be monitoring leads to later high-paying jobs. This pattern can be seen repeated in nuclear regulators who didn't enforce the necessary checks, and another example in the recent tunnel disaster. Other examples include the "harmonious" relationships within the legal system where the police, prosecutors and judges collaborate to ensure convictions - even going so far as to fabricate evidence to ensure that there's no "disharmony". There are several other major problems in Japan that can be tracked back to this single cultural concept, from bullying to price fixing.

While I wouldn't want Japan to abandon the concept of harmony it is important that Japan realise that harmony is less important than people's lives, and that sometimes a little disharmony is critical in improving processes.