Monday, May 18, 2015

Japan’s Economy

This Is What Keynesian "Success" Looks Like: Soaring Part-Time Jobs, Record Low Real Wages, Submitted by Tyler Durden on 05/17/2015 10:45 -0400

Though we noted the plight of the Japanese worker in a previous post, a plight which arrived in the US some five years ago yet which the mainstream still refuses to acknowledge, the punchline may have been somewhat diluted. So here it is again, without much additional commentary.

When it comes to the consequences of Japan's QE, now in its third year, the head of the BOJ has been very clear:

  • KURODA: BOJ'S EASING IS HAVING INTENDED EFFECTS: 5/14/2015
  • KURODA: JAPAN IS APPROACHING FULL EMPLOYMENT: 5/13/2015
  • RODA: JAPAN ECONOMY IMPROVED CONSIDERABLY AFTER QQE POLICY: 5/13/2015

In short: Keynesian policies (courtesy of the sage advice of none other than Paul Krugman), coupled with some $80 billion in monetarism monthly, have been a smashing success. At least that's the propaganda. Now, here is Japan's "full employment" truth.

Exhibit A: soaring part-time jobs: Part-Time jobs rose 3.5 million and Full Time jobs

Part-Time jobs rose by 3.5 million since 2007. Most Part-Timers are Middle Age and Seniors.  Full-Time jobs rose by 1.2 million.  Real Wages have declined 10% since 1991.


Comments

Japan has been printing money for decades. Millions of part-timers live in closet-size bedrooms rented inside internet café’s. They report that when they were full-time, their rents were too high and their workday was too long. They work part-time for subsistence. They are single and don’t own cars.

The Japanese government, like ours, is in denial about our declining economies and continue to increase their unsustainable debt to forestall deflation.  We both would have been better off not doing any money printing and allowing their economy to normalize. They face the same currency crash we are expecting in the U.S. because they have already printed too much money.

Norb Leahy, Dunwoody GA Tea Party Leader

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