Assessing the Japanese Economic Fallout
The recent disasters to befall Japan, to be sure, are tragic, but these losses should not result in more than a small decline in the per capita standard of living of the Japanese people.
Nobel Laureate and professor of economics at the University of Chicago, Gary Becker says Japan, as well as the world economy, can sustain its heartiness despite recent events. "Further economic consequences always follow from major disasters. Production by some businesses has been temporarily reduced since supply chains were disrupted. Since the earthquake hit a depressed and declining region, out migration of young men and women will accelerate, as will the decline of fishing and farming in that region. Construction will increase to replace some of the destroyed homes, businesses, and infrastructure."