JudeJin

The Demise of Japan as an Economic Power?

the real problem underpinning any economic problem is there's not enough work for everyone because the labor can't clear on the current price! japanese are working hard on after hour drinking binges and spent a lot in "snacku". the government intervention has kept the real economy from adjusting to the new labor supply demand equation after china joined the global competition. same problem with the USA.

when i was a teenage in shanghai, my parents was making less than 1000 dollars a year. but once china joined the global trade, hey, a lot of people are making 50K USD a year now, or even more.

in order for the japanese and the americans to compete, the labor market has to clear on market price without any intervention. intervention to keep the wages artificially high will result in higher unemployment. that's a rule of thumb!