Japanese, the wave of the future? It has often been said that developed economies are starting to mirror the Japanese approach in its policies. High sovereign to GDP debt ratios, endless QE programmes and economic stimulus, only to end in a stagnant economy. Click here for a typical commentary on this Japansee economic model being exported to other developed economies.
One alarming statistic on Japan, is its population projections. Looking at the thumbnail chart, we can see that Japan’s population is set to be cut in half over the next century. I don’t have to tell you what its growth prospects will be over the long term. It will be declining. With a declining population and growth, can it maintain its sovereign debt ratios? Is a crisis at some point in the making?
Why has the Japanese population been in decline? Here is an amazing statistic; more than a third of childbearing-age Japanese have never had sex: 39 percent of women and 36 percent of men, ages 18 to 34. Yes with this statistic, I can understand the population decline. From this report (click here), here are some excerpts:
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[li]Extremely high numbers of Japanese do not find sex appealing. 45 percent of women and 25 percent of men, ages 16 to 24, are “not interested in or despised sexual contact.”
[/li][li]More than half of Japanese are single. 49 percent of unmarried women and 61 of unmarried men, ages 18 to 34, are not in any kind of romantic relationship.
[/li][li]In every age group, the percentage of Japanese men and women who are not in a romantic relationship has been increasing steadily since the 1990s.
[/li][li]About a quarter of Japanese don’t want a romantic relationship. 23 percent of women and 27 percent of men say they are not interested in any kind of romantic relationship.
[/li][li]The Japanese population institute projects that women in their early 20s have a 25 percent chance of never marrying and a 40 percent chance of never having kids.
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You might say that these population and cultural statistics are unique to Japan, but one does have to wonder what prolonged economic stagnation has played into this cultural change. After all, it is harder to create families in these modern economic hard times. Will other developed economies follow in Japan’s footsteps? Food for thought.
Blue Point Trading, William Thompson
