Re: Japan

[Hyman Blumenstock <hystock@xxxxxxxxx>]

How much can a consumer consume, in pounds of material or equivalent
price in dollars, and how much time is available to do anything or be in
more than one place at a time?

Even multiplying the quantity one person can consume by millions of
individuals, still comes out finite?

How do you "increase the level of consumption?"

Hyman

Gregoire de Nowell (ci-devant) wrote:
>
> I note in the economist that gross domestic savings in japan
> is a wopping 30% of GDP.  I also note that the interest rate
> on the long band dipped blow 2% fot he first time; short
> rates are at 0.5%.  It seems to me taht the high savings
> rate has bid up the price of financial assets and lowered
> the real interest rate.  It would be interesting to know
> what level of consumption Japan could sustain w/a lower
> savings rate.
>
> One solution for the Japanese might be to increase consumption
> by lowering taxes and running a bigger deficit, leaving
> more money in the hands of consumers and also giving them
> a larger supply of bonds for which to bid.  But suppose that
> consumptive tendencies are *not* unlimited and that generations
> of thrift would simply lead to more savings?  It would seem
> to me that the govt may not be in a position to rely on
> consumers to consume.  It might be prudent therefore to
> achieve a higher deficit by increasing expenditure on public
> goods.   It is difficlt to imagine what kind of quality
> of life such a colossal public works program would purchase.
> "The streets would be paved with gold."
>
> 'Nuff for this topic.
>
> greg nowell