Keynesian economists are propagandizing the media with a unified message; in one breath lightly touching on the human tragedy in Japan, while in the next anticipating with delight the economic recovery it will (supposedly) create. The natural disaster in Japan is tragic both on a human level and economically. Japan may, possibly, enjoy a GDP boost in six months or so as a result of some rebuilding, but the billions in present-day lost productivity will easily negate any future upside.
The buildings and businesses with billions in loans have (and will continue to) experience enormous losses. Who will realize these losses? Insurance losses – the capital that would be invested in other productive assets – now must cover billions in claims. And what about the economic impact resulting from the loss of nuclear efficiency? Consider the power situation in Japan over the coming months with 40% of electricity used in greater Tokyo historically originating from the Niigata and Fukushima prefectures. In totality, it is mystifying how any economist could predict a net economic positive.
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