This little guy? Probably not the answer to Japan's aging problem. Kyodo via AP Images
Months before the concept of Abenomics even existed, Masaaki Shirakawa, the former Bank of Japan governor, made an unusual argument for why it won’t work....MUCH MORE
“In aging economies…[because] the scarce labor force imposes a natural constraint on labor supply, the marginal product of capital declines accordingly,” Shirakawa said in a speech. ”As a result, macroeconomic growth would be impeded (pdf, p.8).”
And now in plain English: Japan’s aging caused its deflationary spiral. If Shirakawa is right, Abenomics is doomed.
Demographics are the pink elephant of Abenomics
Abe’s recent speech on his structural reform program made no concrete mentions of how he plans to confront Japan’s aging crisis. And use of the word “crisis” isn’t overblown: The Japanese are aging at the fastest rate of any country on the planet. The overall population began shrinking in 2005, while its working population peaked in 1995 (pdf, p.6). No amount of deregulation, which is essentially what Abe is proposing, is going to offset that demographic shift.
The only way to fight demographics is to address them directly, which Abe’s structural reform program doesn’t do. To his credit, his plan includes some efforts to get women into the workforce, which, as we’ve said before, can slow the impact of aging. But those reforms are minor. Here’s a look at the problem:
Japan hosts the world’s heartiest old people, and that’s a problem...
Previously:
"Japan to promote robots for nursing home care"
Eldercare Robots Leaving Japan, Coming to America
Japanese Robots
High tech but a bit creepy....Robotic Outsourcing; Food Preparation Robots Targeting Minimum Wage Positions in China, Japan, US
...Apparently these are known to the cognoscenti as Fembots or Gynoids.
Probably more than you cared to know...
"Robot servants that know what you want without being told"
