Greying out of Growth

Lack of population growth in Japan is the ultimate cause of their economic woes.

We previously wrote about the BoJ (Bank of Japan) joining Europe in implementing negative interest rates as a last ditch effort to stimulate growth. We linked that to the fact that the TRPF (tendency of the rate of profit to fall) drives the profit rate down to the growth rate of the working population.

This year is the high water mark of Japanese population. We will most likely see their economy sink into depression in the next year or two as the affects of their first decrease in population since 1920 is felt.

How they attempt to handle the further economic downturn will stand as a model for Europe as they approach the same population nadir in the coming decades.