Recent cover page of Economist compares US and Germany (and west in general) to Japan.. or at least saying that West is on the way to Japanese style of economy... as most of us know that Japanese economy is shrinking for last decade or so and is not able to jump start despite all the efforts by Japanese central bank or government.
Later on I realized that this article was becoming too long.. so I will do it in installments... In this part we will focus Just on Japanese problems and my magical solution for them :-)
Well.. first I would like to take "West" in General comparison to Japan.. I totally disagree with the comparison... May be end result is comparable but fundamental reasons are quite different.. They both are fundamentally different economies with different set of problems and needing different set of solution.. actually they are kind of complementary to each other..
Let us take Japanese economy in brief.. Japanese economy is burdened by extra hard work and extra savings by Japanese.. Surprised!!! excess of everything is bad.. but this is reality and fact.. Due to extra workaholic nature of Japanese they didn't had/have time for family and resulted in shrinking and aging native population.. Due to vastly unique and different culture and language very few immigrants are ready to move to Japan.. On top of it, Japanese have extremely thrifty and have great habit of saving and not spending.. All this literally killed Japanese growth engine which was mainly driven by exports... Exports are still there but kind of matured or facing threat from other emerging nations like BRICK.. On top of it, Manufacturing is like Sacred Cow for Japanese.. and as a result, Services (including Software Development) were totally left out by Japanese to be conquered by US and emerging economies...
So what could be possible solution for this mess in Japan... Easy.. at least on paper or in theory.. few very fundamental changes.. Make Over time illegal in Japan.. Any one who is caught working more than 40 hours (okay.. let us say 50 hours for Japan) a week.. they will be forced to do shopping and buying for double the time they did the overtime.. You should see that, I haven't included drinking and eating.. that Japanese men do any how.. Well.. this will force them to spend.. Whom on they will spend.. hopefully for their families or girl/boy-friends... When they will spend more time and money on families and friends.. they will automatically simulate economy by increased consumer spending and also hopefully by increasing population.. also.. as overtime will be illegal.. in immediate future.. Japanese companies will be forced to hire more workers and may be get immigrant workers.. and then further solving unemployment and aging and decreasing population.. I am open for other creative solutions if you have any.. I don't want to say it.. but I think this earthquake is also blessing in disguise for Japan.. I hope they will realize value of life and it will give them jolt to change their habits and start enjoying more.. apart from lot of spending to rebuild the great nation..
Later on I realized that this article was becoming too long.. so I will do it in installments... In this part we will focus Just on Japanese problems and my magical solution for them :-)
Well.. first I would like to take "West" in General comparison to Japan.. I totally disagree with the comparison... May be end result is comparable but fundamental reasons are quite different.. They both are fundamentally different economies with different set of problems and needing different set of solution.. actually they are kind of complementary to each other..
Let us take Japanese economy in brief.. Japanese economy is burdened by extra hard work and extra savings by Japanese.. Surprised!!! excess of everything is bad.. but this is reality and fact.. Due to extra workaholic nature of Japanese they didn't had/have time for family and resulted in shrinking and aging native population.. Due to vastly unique and different culture and language very few immigrants are ready to move to Japan.. On top of it, Japanese have extremely thrifty and have great habit of saving and not spending.. All this literally killed Japanese growth engine which was mainly driven by exports... Exports are still there but kind of matured or facing threat from other emerging nations like BRICK.. On top of it, Manufacturing is like Sacred Cow for Japanese.. and as a result, Services (including Software Development) were totally left out by Japanese to be conquered by US and emerging economies...
So what could be possible solution for this mess in Japan... Easy.. at least on paper or in theory.. few very fundamental changes.. Make Over time illegal in Japan.. Any one who is caught working more than 40 hours (okay.. let us say 50 hours for Japan) a week.. they will be forced to do shopping and buying for double the time they did the overtime.. You should see that, I haven't included drinking and eating.. that Japanese men do any how.. Well.. this will force them to spend.. Whom on they will spend.. hopefully for their families or girl/boy-friends... When they will spend more time and money on families and friends.. they will automatically simulate economy by increased consumer spending and also hopefully by increasing population.. also.. as overtime will be illegal.. in immediate future.. Japanese companies will be forced to hire more workers and may be get immigrant workers.. and then further solving unemployment and aging and decreasing population.. I am open for other creative solutions if you have any.. I don't want to say it.. but I think this earthquake is also blessing in disguise for Japan.. I hope they will realize value of life and it will give them jolt to change their habits and start enjoying more.. apart from lot of spending to rebuild the great nation..
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