11-20-2016, 03:14 AM
(11-19-2016, 08:10 PM)Warren Dew Wrote:(11-19-2016, 03:23 AM)Galen Wrote: You have noted the negative effects of this policy on the young who also tend to be poorer and not hold equities. This has made wealth inequality greater than it otherwise would be just as it has in the US. I would also maintain that in addition to the taxes that fall more heavily on the poor, the decrease in purchasing power caused by inflation has fallen on the poor and the young. It seems likely that this is part of the reason why family formation and the lower birthrate has affected Japan more than it has in the US and Europe.
I really don't think you can say Japan continued with inflationary Keynesian policies after the crash. In the 1960s to 1980s, when they were trying to build exports to the U.S., yes, but since the beginning of the 1990s, inflation in Japan has been essentially zero, with the price index the same in 1992 as it is today:
http://www.tradingeconomics.com/japan/co...-index-cpi
(set the graph to "max" time period)
Fair enough but they have been trying to use Keynesian policies to create consumer price inflation which has not occurred. Inflation in the classical and Austrian sense is an increase in the money supply. They have been printing money and the government has been spending like a madman for nearly thirty years and it hasn't gotten them what they want. In this case nominal economic growth and price inflation which have yet to be seen.
The policies have been Keynesian with rather unexpected results.
Democracy is the theory that the common people know what they want, and deserve to get it good and hard. -- H.L. Mencken
If one rejects laissez faire on account of man's fallibility and moral weakness, one must for the same reason also reject every kind of government action. -- Ludwig von Mises
If one rejects laissez faire on account of man's fallibility and moral weakness, one must for the same reason also reject every kind of government action. -- Ludwig von Mises