A completely untenable development is under way in Japan. Currently, almost 10% of all men and 14% of all women are 70 and older. By the year 2050, those figures are forecasted to reach 24% (men) and 33% (women). If those projections are somewhat close to reality, the current fiscal imbalances are child’s play.
For this very reason, politicians need to address these issues not just with temporary band aids but with real measures to control spending and to put the economy on a path to sustainable economic growth. Yes, meaningful measures will be painful and there will be much more at stake than seemingly silly programs like 13th and 14th month salaries. Politically, this may be an extremely risky endeavor as most politicians tend to play to the mood of the latest opinion polls. Granted, there are no easy answers but something’s go to give if we want to avoid the obvious path towards the bankruptcy of many nations. Greece must be viewed as an important wake-up call. Mr. Obama, Mr. Brown (Mr. Cameron?), Frau Merkel, Mr. Hatoyama, Mr. Sarkozy et. al, have your phones been ringing lately?
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