POSTED BY ORHAN
Over at Make Wealth History there’s a post on Japan as the world’s first post-growth economy. In the eyes of economists, Japan is an economic disaster. GDP has been essentially flat since the early nineties. China’s economy outstripped Japan’s for the first time last year. “And yet”, says Jeremy:
“…the lights are still on, everything still works. Literacy is high, and crime is low. Life expectancy is better than almost anywhere on earth – 82 years to the US’ 78. The trains run to the second. Unemployment is only 5%, and levels of inequality are enviable. Real per capita income growth matches America’s at 0.7% over the past decade. It’s hardly a basket case. In fact, it is living proof that growth isn’t necessary to deliver a high standard of living.”
Even though some economists are horrified at the lack of growth, others are thinking twice. If the goal of a state is to nurture and sustain its people, Japan may not be doing so badly after all. And it may turn into a model for other countries that are hitting the wall in terms of economic growth.