When a country’s population no longer reproduce, the proportion of senior citizens or old people increases.
That’s what’s going on in Japan. Increasing numbers of its young people are asexual. Not only are they shunning the idea of marriage and having children, as many as 1 in 4 unmarried men and women in their 30s say they have never had sex.
But demographics have economic consequences.
Old people not only don’t work, they also buy less, except for food and medicine. All this has negative implications for the country’s GDP (gross domestic product) because fewer workers and less labor reduce national economic output. At the same time, the rising number of retirees strains government’s welfare programs and the country’s pension funds that are major buyers of government bonds.
Then if you add to all this, a huge national debt of more than $13.7 trillion and growing — the world’s second-largest debt load — what you have is national suicide.
The proportion of the Japanese population over 65 years old:
- 1 in 10 in 1985
- 1 in 5 in 2006
- more than 1 in 4 in 2014
- 30% by 2022
- 40% by 2050
Bloomberg’s economist, Michael McDonough, shows Japan’s grim future via three graphs:
Graph #1 shows steep GDP losses in those prefectures (districts) in Japan that have more older people — a harbinger of what’s in store for Japan as a country:
Graph #2 shows how the aging population decelerates economic growth:
Graph #3 shows how Japan’s national debt will continue to mount:
Source: Zero Hedge