Posts tagged opinion

Saving is a Good Habit, but also a Bad Habit

Japan’s $15 Trillion Not Enough to Make It a Buy by William Pesek: Click Here

Is saving a good habit? If you look at Japanese people, they save a lot. As a result of assiduous saving, Japanese households have about $15 trillion according to the Bloomberg commentary by William Pesek. Wow, $15 trillion dollars! It’s higher than United State’s GDP of $14.2 Trillion (2008). However, the author acerbically criticized that Japanese people’s habit of saving is actually harming the Japanese economy for several reasons.

As you see, the saving is considered as a leakage along with importing and taxing. Why is saving considered a leakage? It is because the money saved is not used in the economy or market for long period of time. It is like blocking a current of river by building a dam. Saving is necessary, however, excessive saving can result in deflation, which Japan is severely suffering from.

Although the Japanese households have $15 trillion, they do not use it. This is one of the major roots of Japan’s lost decades and current economic crisis. The news columnist William Pesek claims that Japanese people’s saving of consuming is causing the deflation because the market has lack of currency flowing through it. If an economy is compared to a human body, people’s lack of consuming can be compared to low blood pressure. There just aren’t any money to get the economy going. Due to low demands for almost all the goods and services in Japan, the suppliers has to lower the price of their product. And this causes deflation, which William Pesek considers it to be a big problem for Japanese economy. The market is just hamstrung by Japanese’ excessive saving.

Japanese government’s public debt of 200% (to GDP) has resulted from this excessive saving too. Because there is a big leakage (saving) in the market, the Japanese government has to borrow from banks or households and pour it in the market to make it working. If the government do not support the market, the economic crisis would have been more devastating. As a result of trying to pour the money into the market, the Japanese government’s 45% of its spending is from Japanese’ households lending. This has further accumulated the public debt of 200% (to Japanese GDP).

Why are Japanese people reluctant in spending? It is from the lack of confidence about the future. The Japanese government is to be ascribed to the blame. The government did not take aggressive measures to tackle the problem. This has resulted in Japanese people’s distrust toward the government. The government now has to take aggressive measures to tackle the economic depression and encourage the people to spend more.

In sum, saving is a necessary habit, however, it could also hurt the economy if this is done excessively, when no one is willing to buy anything and just save money. I think that the best solution for Japanese economy to rise again to for the Japanese people to spend more again. Just think. If Japanese people spends all of $15 trillion, the GDP will surpass the US GDP. 🙂 yay and Japan will have the top GDP in the world. I personally do not think that that much of spending is worth it :(. Yet, this will be the best solution to the economic crisis in Japan.

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1:1 Computing

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My parents thought that 1:1 Computing was an exciting way to interact fully with the subject Economics. However, my parents were concerned with distraction you might get from laptops just like any other parents.

I think that if you reach Junior year, I think that most of the students get responsible of their academics. So there will be less of distraction. If we only set our laptops fully optimized for studying economcs, there would be no worrys. For example, you can register the class blog, moodle, and other economcis websites to bookmark to prevent going to irrelevant websites. Also, I think that our teacher is having full control of what students are doing on their laptops.

In short, I think that the distraction you get from laptops are neglegible.

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Opinion: Japan Recruits Foreign Nurses to Care for Elderly

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Click Here: News Article

Just like U.K., Japan is recruiting foreign nurses to solve the problem of scarcity of nursing workforce. This is a typical problem for many developed countries with large old population.

In my opinion,  Japanese government’s decision was somewhat hasty. Although there are influx of international population in Japan, Japan is still considered to be ‘xenophobic.’ The recruitment of foreign nurses would surely stir some problems such as discrimination. Even the response of Japan Nursing Association was somewhat xenophobic. This problem would not be apparent initially, however, it could be aggravated to diplomatic problem between Japan and the foreign country.

Other than problems of Japanese’ detest of foreign nurses, there is another problem with this decision. Most of the recruitment of foreign nurses were made in developing countries. If Japan recruits all these medical workforce, developing countries might have shortage of medical resource. It would be snatching away doctors and nurses from developing countries which would need the most medical support.

About developing robots to nurse the old population, I think that it is somewhat inhumane. I think that old people should be nursed through social interaction, not with mechanical interaction.

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