How can a country have both problems with shortages of workers whilst at the same time the amount of money being spent by consumers remains weak? Normally, shortages of labour lead to increasing prices and increasing consumer expenditure.
Give up?
Well this is what is happening in geriatric Japan. As great swathes of high paid workers retire they are being replaced by much younger people who are paid less and hence spend less. Japan is experiencing labour shortages and falling/static consumer spending.
This phenomenon is something that Europe will experience. Strange stuff, the economic impact of the aging population. Dick Stroud
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