[HN Gopher] Saito Renho on Japanese economic growth, 'Abenomics'...
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       Saito Renho on Japanese economic growth, 'Abenomics',
       redistribution, and more
        
       Author : mooreds
       Score  : 50 points
       Date   : 2022-03-09 15:24 UTC (7 hours ago)
        
 (HTM) web link (www.hks.harvard.edu)
 (TXT) w3m dump (www.hks.harvard.edu)
        
       | JustARandomGuy wrote:
       | Very insightful and thought-provoking.
       | 
       | I really appreciated this insight, that governments had (quote)
       | _an understanding that if you just leave young people to be, they
       | will go and get married. They will have children. They will be
       | able to have a family and there will be no problem there. You
       | just need to let them go ahead and do that, which is a very naive
       | way of looking at it_
       | 
       | The next 100 years is going to be very interesting for
       | demographics. I've heard it said that China needs to grow rich
       | before it grows old, and that saying could apply to many Asian
       | countries right now. Fully expect to see much more support for
       | having a family in countries across the world.
        
         | lifthrasiir wrote:
         | South Korea provides an evidence that this understanding is not
         | only naive but also actively damaging the society. SK's
         | fertility rate hit the record low of 0.84 in 2020 (compare with
         | Japan's 1.36 in the same year), primarily because increasingly
         | more people chose not to marry. There are a multitude of
         | reasons, including pervasive misogyny which acts as a negative
         | feedback to prevent further marriages. But regardless of the
         | reasons, there is no reason to believe the fertility rate will
         | recover by its own without active policies (of which SK
         | crucially lacks).
        
           | Ferrotin wrote:
           | South Korea just had an election which may change its
           | direction in that regard.
        
             | lifthrasiir wrote:
             | You probably wouldn't have known but I watched the whole
             | vote counting process all the night (6:50 am here). And
             | Yoon, the president-elect, is not really known for his
             | gender equality policies---he is a polar opposite to say
             | the least.
        
               | Ferrotin wrote:
               | Yes, and because gender equality suppresses fertility
               | [1], that would do the opposite.
               | 
               | [1] citation needed, and given Asian fertility rates,
               | highly questionable
        
               | lifthrasiir wrote:
               | Oh yeah, a forced marriage will do a great job. (Thank
               | you for the footnote by the way, I was a bit nervous at
               | the first!)
        
         | throwawaymanbot wrote:
        
         | mooreds wrote:
         | If you want to see the demographic disaster many countries are
         | heading toward, can't recommend Peter Zeihan enough.
         | 
         | https://www.youtube.com/watch?v=GNvdBRjRno8 is a good intro
         | 
         | Disunited Nations is his most recent published book:
         | https://zeihan.com/disunited-nations/ (a new one is coming out
         | in June)
        
           | pphysch wrote:
           | Frankly, Zeihan is a crackpot when it comes to geopolitics.
           | If you rely on him for geopolitical insights, you will be
           | massively misled on virtually every issue.
           | 
           | In particular, it is ridiculous to talk about long-term
           | demographics in a vacuum. We are no longer in the phase of
           | human history where you need millions of young people to be
           | working hard 70 hour weeks. Economic productivity is no
           | longer a function strictly of animal (human) muscle mass. We
           | are, just barely, in the age of automation.
           | 
           | From _Disunited Nations_ :
           | 
           | "Germany will decline as the most powerful country in Europe,
           | with France taking its place. Every country should prepare
           | for the collapse of China..."
           | 
           | LOL
        
             | sanp wrote:
             | We may not need as many producers but we do need
             | consumers...
        
             | mooreds wrote:
             | Interesting. Who would you recommend reading instead?
        
               | pphysch wrote:
               | Michael Hudson on global economics - https://michael-
               | hudson.com/2022/02/america-defeats-germany-f...
               | 
               | Benjamin Norton on Latin American geopolitics -
               | https://multipolarista.com/
               | 
               | Pepe Escobar has fantastic & entertaining insights on the
               | Eurasia region if you can stomach the occasionally pro-
               | Russian hagiography - his main site (+ other great
               | analysts) is down to DDOS right now -
               | http://thecradle.co/
               | 
               | The nation difference between these guys and Zeihan, is
               | these guys are actually on the ground (or spent their
               | careers on the ground), whereas Zeihan is a desk jockey
               | that makes pretty charts and ridiculous, baseless
               | extrapolations from them.
        
             | fleddr wrote:
             | Fully agree. Zeihan takes a singular issue, and then
             | projects it far into the future under the ridiculous
             | presumption that absolutely nothing else will ever change.
             | 
             | Already right now, half our economy is made-up, bullshit
             | jobs to produce bullshit items, keeping each other busy on
             | the back of monetary stimulation.
        
             | BitwiseFool wrote:
             | I'm not sure what's so LOL worthy about this. Germany does
             | seem to be in decline and China does seem to be a house-of-
             | cards in many aspects.
        
               | pphysch wrote:
               | "seem" is doing a lot of heavy lifting here.
               | 
               | That statement from Zeihan is absolutely hilarious to
               | anyone with a passing knowledge of 21st century history
               | and ongoing trends...
        
               | BitwiseFool wrote:
               | Seem can be a weasel word, I'll definitely grant you
               | that. My receptiveness to the idea that China is on shaky
               | ground comes from what I was reading about Evergrande
               | coupled with how analysts are reporting that their
               | official numbers are heavily manipulated. I don't think
               | the PRC will collapse into some successor state, but it
               | would probably end up in a Great Depression and lose a
               | large amount of power and influence. Temporarily at
               | least.
        
             | TMWNN wrote:
             | Zeihan's been predicting for a decade that Russia's
             | collapsing demographics would force it to quickly act
             | (before it can no longer do so) to expand its
             | borders/security zone. It's tough to call the Ukraine
             | invasion anything else.
        
               | pphysch wrote:
               | If you think Russia invaded Ukraine primarily because of
               | "demographic issues" i.e. territorial expansion for
               | resources, I have a bridge to sell you.
        
               | vkou wrote:
               | Looking at Chechnya, the Georgian-Ossettian-Russian war,
               | and observing that the entirety of Eastern Europe lurched
               | into camp West around that time period, you don't have to
               | be Nostradamus to imagine that Russia's desire to keep as
               | much of the Soviet empire with it as possible will
               | manifest sooner or later.
               | 
               | Which has nothing to do with its demographics, and
               | everything to do with its politics.
               | 
               | ... Also, Ukraine is facing the exact same demographic
               | stresses as Russia. Also, demographics don't matter as
               | much as, broadly speaking, industrial capacity in modern
               | wars. They aren't about throwing an entire generation of
               | men into million-casualty-offensives over no-man's-land.
        
         | rayiner wrote:
         | This is a good example of culture acting in often invisible
         | ways--a force that you don't notice at work until it's gone.
         | There's a lot we assume to be universal about human behavior
         | that's actually the product of cultural forces transmitted
         | through generations.
         | 
         | My dad spent his career on maternal health and family planning
         | issues. He's in the group of folks that's the reason that
         | Bangladesh's fertility rate has fallen from almost 7 per women
         | in 1975 to just over 2 today. There was a generational effort
         | in Asia to basically change the culture to discourage having
         | large families. The notion that national prosperity is
         | associated with population control was deeply impressed upon
         | Asians--to the point where my dad thought it a little weird
         | when my wife and I decided to have three kids. I suspect that's
         | part of the reason why fertility rates in east asian countries
         | have dropped not only below replacement rates, but down to
         | under 1 in several countries.
        
         | rr808 wrote:
         | Its kinda amazing to see Ukraine fighting Russia - both have
         | rapidly shrinking populations even before the war.
        
         | alephnan wrote:
         | > I've heard it said that China needs to grow rich before it
         | grows old, and that saying could apply to many Asian countries
         | right now.
         | 
         | Asian countries are quite diverse in the economics
         | demographics.
         | 
         | Japan's already rich, but aging. Japan is stuck in the 1980s in
         | many regards including soft power.
         | 
         | China's not aging yet, but it's on Japan's trajectory. Bad with
         | soft power.
         | 
         | South Korea is similar to China, but it's already rich.
         | Japanese may disagree but South Korea is arguably the strongest
         | in soft power in Asia.
         | 
         | Vietnam has a young population, but it is still developing and
         | might be subject to the middle income trap if automation for
         | otherwise low cost labor ramps up.
         | 
         | Taiwan has its silicon shield, but software engineers are paid
         | pretty bad. There just aren't many high paying salaries there.
         | It also has a big welfare system despite not having many
         | job/career opportunities.
         | 
         | Hong Kong there is an exodus of young people and white collar
         | people.
         | 
         | Japan probably has the most affordable housing in the list,
         | relative to the average income. I'm currently living here. I've
         | been looking at real estate in Taiwan, but it just makes zero
         | sense. It makes Manhattan condos seem reasonable given how old
         | and units in Taiwan are.
        
           | dublinben wrote:
           | >China's not aging yet
           | 
           | Yes they definitely are, and faster than almost any other
           | country. China's median age is already well into middle age,
           | and their birth rate has peaked and is falling quickly.
           | 
           | https://en.wikipedia.org/wiki/Aging_of_China
        
             | nicoburns wrote:
             | > Yes they definitely are, and faster than almost any other
             | country.
             | 
             | I know what you mean, but I find the notion that the
             | Chinese are ageing faster than everyone else amusing.
        
           | rr808 wrote:
           | The interesting thing for me with Japan and babies is in the
           | 80s when houses were the most expensive in the world, the
           | birth rate was much higher than now when houses are the
           | cheapest in the developed world.
        
             | throwaway1777 wrote:
             | Isn't the correlation obvious? Growing population means
             | higher demand for housing, shrinking population means less
             | demand and prices go down as units aren't needed. It goes
             | to show that the cultural forces are more important than
             | the cost when choosing whether to have kids.
        
               | lotsofpulp wrote:
               | There are also confounding factors of increasing number
               | of financially independent women and more convenient,
               | more foolproof birth control methods.
        
         | golemiprague wrote:
        
         | sothatstheway wrote:
         | In a class for my Masters in Public Health, we saw evidence
         | that really nothing affected the average number of kids women
         | had in any country or the average age they had their first
         | child except for one factor: the education level of the women.
         | That is, as education went up for women, the average # of
         | children went down and the average age they had their first
         | child went up.
         | 
         | If this is still true, the flip of that is that as countries
         | climb up the relative ladder and women have greater access to
         | education, expect to see population #s dwindle without having
         | really any levers to affect it otherwise.
        
           | toomuchtodo wrote:
           | https://ifstudies.org/blog/research-debunks-myth-that-
           | econom...
           | 
           | TLDR The opportunity cost of having children in affluent
           | society is too damn high.
        
             | noneeeed wrote:
             | Really interesting to see an alternative view from the
             | prevailing narrative that it's all about the direct costs
             | (housing, childcare etc).
             | 
             | It seems to be such a multi-factor problem that I don't see
             | any governments managing to come up with "solutions" to it,
             | especially as most that are put forward are single factor
             | and rarely amount to much more than fiddling around the
             | edges.
        
           | trophycase wrote:
           | I kind of have a hard time believing this. Especially since
           | the causation could run the other way. Declining birth rates
           | are probably due to a lot of factors, the biggest being use
           | of birth control, discouraging women from having children,
           | societal attacks on traditional gender roles, obesity, lower
           | testosterone/sperm levels in men due to lack of
           | exercise/chemical pollutants/cultural factors.
           | 
           | I'd be very interested to see this research. I have a hard
           | time believing that anything positive will be done about the
           | birth rate if this is what they are teaching at a masters
           | level.
           | 
           | I also think the cost of having children is completely
           | overblown, people just simply aren't willing to make the
           | sacrifices.
        
           | mistrial9 wrote:
           | > the education level of the women
           | 
           | educators in the WEIRD schools teach this, for sure. They
           | also teach a lot of other things that have not stood the test
           | of time.
        
       | Nasrudith wrote:
       | I got the impression that the two main things holding back Japan
       | economically were overwork and a social signaling of "loyalty"
       | arms race. Both are divorced from actual productivity efficiency
       | and effectively make a minor martyr culture where the emphasis is
       | more on sacrifice than results. I cannot speak to actual
       | conditions, only observed tropes which may be outdated. Even
       | before COVID-19 forced changes.
       | 
       | Regardless limits to extreme hours and more robust enforcement to
       | better avoid off the book hours would probably be more effective
       | there.
        
       | pphysch wrote:
       | tl;dr: Japan, as the Asian Tiger economy most distant from the
       | rising China, is viscerally experiencing the inadequacies of
       | neoliberal policies. They know they will become the "sick man of
       | Asia", isolated and weak, if they keep the current trajectory --
       | a massive reversal from just 50 years ago.
        
         | AlchemistCamp wrote:
         | The four tigers were Hong Kong, Singapore, Taiwan and Korea.
         | Japan was never one of the group.
        
           | pphysch wrote:
           | True, Japan was the "proto Tiger" but not one of the
           | following Four that it inspired. My point stands
        
         | greydius wrote:
         | What are inadequacies of neoliberal policies?
        
           | pphysch wrote:
           | TFA explains them succinctly -- lack of investment in public
           | goods leads to a high cost of living which has many long-term
           | negative effects, including low childbirth rates.
           | 
           | Neoliberal policies tend to optimize for GDP in a shallow
           | sense and neglect other indicators.
        
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