Friday, January 17, 2014

Demographic Challenges

"An aging population is almost by definition deflationary. We can see the results in Japan. An aging, conservative population spends less. An interesting story in the Wall Street Journal this week discusses the significant amount of cash that aging Japanese horde.

A skeptic might note that 38% of Japanese transactions are in cash and as such might be difficult to tax. But I'm sure that Japanese businesses report all of their cash income and pay their full share of taxes, unlike their American and European counterparts."

Forecast 2014: The Killer D’s - Thoughts from the Frontline

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