Japan has adopted negative interest rates as the latest effort to revitalize its dying economy.
But the country has been falling down the demographic cliff after its baby boom ignited a surge of spending in the 1980s.
Look at Japan’s Spending Wave. This shows a 47-year lag from birth to peak spending:
Japan’s pre-World World II baby boom peaked in spending in 1989 at the height of the country’s economic prowess. The last of its baby boom peaked in spending in late 1996. It’s been in a coma economy ever since. And unfortunately, it only gets worse overtime.
While it’s hitting Japan hardest right now, this is a demographic reality all developed nations must face. And right now it’s a problem with no solution.
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President Trump has come into office with a tall order at hand, one of many, to restore faith in our ability to retire on time…. or at least come close.
But unfortunately, the reality is that the numbers aren’t in his favor… or ours.
We dive deep into U.S. retirement figures, looking at why people are reporting such modest nest eggs, to gain perspective on the future of the retirement landscape in our latest infographic: How Will Trump Restore the Dream of the Golden Years?