Japan’s Population Now So Old That Sales Of Adult Diapers Exceed Those For Babies
by George Washington
As we noted in 2009, Japan has an incredibly old population … which will put an increasingly heavy burden on the economy:
Franco Modigliani won the Nobel Prize in Economics 1985, partly for his “life cycle hypothesis“, which states that spending and savings patterns are predictable and largely a function of age demographics. In other words, Modigliani’s hypothesis is basically that age demographics largely determine the health and robustness of an economy.
Specifically … the basic health of any country’s economy is largely driven by the number of its citizens who are in their peak spending years.