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Transportation disruptions and the closing of many factories throughout Japan will shrink Japanese aggregatedemand and disrupt supply chains worldwide. Analysts have already reduced forecasted GDP growth rates for Japan by 0.5% for the first quarter of this year, and by more than 1.5% for the second quarter.
Wage growth has not kept up with productivity growth; labor’s share of GDP has fallen and capital’s share has risen. Automation anxiety is made more acute by a labor market that has tilted against workers over the last 30 years, with increasing income inequality and stagnant real wages.
The Ford story doesn’t add up , if you assume that Ford believed that his move alone was enough to raise overall demand for cars. The top 500 firms’ revenues equate to nearly 37% of world GDP. And to demonstrate that you can be a successful business not just in spite of but because of these commitments.
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