To add to this, we should also bear in mind that GDP growth is a bad metric for comparing countries with low population growth with countries with high population growth.
For one western country with high population growth, I calculated that 20-25% of GDP is devoted just to catering for the population growth. New roads, hospitals, houses, offices, power stations, phone lines, offices, factories etc etc. So for Japan with hardly any population growth, GDP overstates the goods available for consumption versus the US, with high population growth. In effect the US has to produce a lot just to stand still.
As Japan has transitioned to low population growth, its effective ‘consumption-available’ GDP growth has been far higher than it looks.
Excellent points.
To add to this, we should also bear in mind that GDP growth is a bad metric for comparing countries with low population growth with countries with high population growth.
For one western country with high population growth, I calculated that 20-25% of GDP is devoted just to catering for the population growth. New roads, hospitals, houses, offices, power stations, phone lines, offices, factories etc etc. So for Japan with hardly any population growth, GDP overstates the goods available for consumption versus the US, with high population growth. In effect the US has to produce a lot just to stand still.
As Japan has transitioned to low population growth, its effective ‘consumption-available’ GDP growth has been far higher than it looks.