While some still worry about over population, the reality is that outside Africa and a few other nations, the growing issue is population loss and and an aging demographic.
SCDigest has reported on this megatrend many times, but we were rather shocked from a recent article on Japan's demographic woes - and how it has incredibly kept its stock maket flat for an incredible three decades.
As seen in the graphic below in the Wall Street Journal, since 1990, as measured by the Nikkei Index, the value of the Japanese stock market has shockingly actually declined for 30 straight years, while over the same period the US market is up 800%.

How can this be in the seemingly prosperous Japan, with the world's third largest economy?
"The rapid aging of Japan's population has driven up health-care and pension costs, slowed productivity, and chipped away at its workforce," the Wall Street Journal notes.
Could it happen here? While it is in better shape than Japan, the US population continues to age, population growth is flat outside of immigration, and productivity growth is far below historic levels.
A rather scary graphic indeed.
The changing demographics also have significant supply chain implications, but that' for another day.
Any Feedback on our Supply Chain Graphic of the Week? What do you think of this contributor list? Let us know your thoughts at the Feedback section below.
Your Comments/Feedback
|