Earlier on Facebook I mentioned a short MicroEcon essay I wrote ten years ago regarding an increase in Money Supply and relative asset prices, and then saw this from, "The Economist," on Japan:
http://www.economist.com/node/16591237?fsrc=scn/fb/wl/ar/strengthamidparalysis
In my short essay, Japan's economy in the 1990's was the relative model I used as an example for this article regarding money supply:
http://www.economist.com/blogs/buttonwood/2010/07/asset_markets_floating_exchange_rates_fiat_money_and_econmy
Although as mentioned in the second article, "coincidence does not prove causality," if Japan's problem is looked at through this twofold lens, it's easy to find a correlation to America's economy: Japan is an aging and decreasing population that is geared too heavily towards "self-interest." This "self-interest" results in a society where it's members primarily make "self-worth" investments and consumption choices that leads to a xenophobic mentality to only accept "like minded" individuals. If Japan had invested a greater portion of it's collective wealth over ten years in the education and assimilation of immigrants to become productive members of it's society, well...it might actually be experiencing growth than a contracting economy...who's to say how many more smart and driven 20, 30 and 40 year olds would be entering into Japan's ranks.
I always had a hard time understanding why other human beings don't understand that if you only "let in" smart, productive people, over time a population and it's productivity will diminish. However, if you welcome and establish an individual from a lower level in a different society and raise that level within your own society (primarily through education...all workers should have an understanding of how the society in which they live works), that person becomes more productive to BOTH societies, and literally a "high power" comes into play in the mathematics of it all, especially if that person has children who also become productive members of society.
As a closing note...remember who helped rebuild Japan after World War II. My grandfather was stationed there during the Allied Occupation...wanna ask him?
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