When It Comes to Economics, Demographics Outweigh Policies

Posted on Posted in Economy

image of global demographics map

Often working with big data, I look for patterns leading to potentially impactful inflection points on economies and ultimately the markets. More than some would care to admit, demographics play a significant role in economic outcomes. As the sands of demography shift within a geographic region or nation, the fiscal and economic policies undertaken and our attitudes towards such need to flexibly adapt. However, politicians, regardless of party affiliation, are quick to deny¬†the realities of dismal science and scapegoat their opponents while beckoning constituents to revert to “what worked before”. Sorry, it’s not quite that simple.

To illustrate my point, I offer today’s video from Stratfor’s VP of Global Analysis , Reva Goujon, and VP of Strategic Analysis, Rodger Baker, discuss Japan’s challenges with stimulating growth amidst a heavily weighted aging population.

Do not think that other parts of the developed world are immune from the consequences of stagnating demographics. One could easily insert Europe or the USA or elsewhere and, while not getting the same results, the repetitively insane failure of QE programs might still persist. Just something to ponder….

Enjoy today’s video which is approximately 9 minutes in length.

 

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