Japan Q4 Real GDP -0.6% Q/Q, -2.3% annualized, vs. consensus -0.4% Q/Q, -1.3% annualized. Tokyo...

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JohnGaltinNC Comment (1)
 
Of all developed nations, Japan now has the most equal distribution of income. The Gini coefficient measures the ratio of income for the top 10% compared to the bottom 10%. In Japan the Gini coefficient is an amazingly low 4.5. The US and China (now capitalist with billionaires, private property + stock exchanges) both have Gini coefficients of 21+. Equal distributions of income results in low economic growth. Japan experienced it's most rapid economic growth in the 1950's + 1960's when they had large disparities of wealth. Chinese starved under Chairman Mao when they had equal distributions of wealth. The policies that you must follow to equalize wealth cause the rich to work less (higher marginal taxes) + the poor to not work at all (generous welfare programs that pay people not to work)... Combined those policies are a disaster for economic growth. With a Gini coefficient of 4.5, it's no surprise that Japan's GDP declined last quarter.... Japan has the lowest rate of economic growth of all non communist countries in the world over the last 10 years (according to the World Bank). Equal distribution of wealth = economic stagnation... or worse... sometimes far worse...
13 Feb 2012, 08:51 AM Reply Like