Friday, 3 July 2015

Hey Biggu Spender

Young Japanese are saving less and spending more.

Good news?


"While that's news you might normally expect to draw a chorus of disapproval from older generations, it's cause for cautious celebration in Shinzo Abe's Japan."

"While consumption makes up 60 percent of the economy, people 20-29 are only 10 percent of the population, and they'll need to spend big to make up for the growing ranks of frugal pensioners."
The demographic battle will be on more than one front. The number of workers aged 25 - 34 have dropped 23% since 2000. The young aren't dropping out. Labour force participation is rising slightly. There are just less young people. (Source)


Spend a little time on a back-up plan.


2 comments:

  1. Hotu Dogu Derek! Just wait until 'strayans start borrowing less and saving/paying down debt more. Then they'll be like the Japanese... in the mid 90's.

    One of my favourite captions was in The Economist with an article about unspendy Japanese, with a picture of an old woman looking in a store window, with the caption "Don't look at it! Buy it!".

    Hope you're enjoying Japan by the way.

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  2. Australia will then import more profligate Australians. Japan is no slouch in marketing to the elderly. Thanks to clever targeting, Okaasan-in-law makes it rain every time she enters a shop. But companies could do more. And the world could learn. Apologies for the delay, Google does not seem to notify me of comments.

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