In 2012, Shinzo Abe decided to put women to work. Womennomics was the idea in order to rekindle inflation, to put women, into the workforce. Japan’s prior trajectory was predominantly male, dependent on the salarymen and a Japanese housewife. While the housewife may toil in work of preparing meals or raising children, her efforts were not economically acknowledged. Economically, only paid work counts.
Economically, only paid work counts.
The only two known ways to predict economic growth is to increase a new labor force in the form of immigrants or shift people into paid employment, to increase a country’s services paid outwards. Shinzo encouraged women to take part-time work, and now the proportion of female workers is higher than that of America where both sexes have dropped out of the labor force together. As the workforce of women grew in Japan, the economy proportionally bloomed.
If your work doesn't produce money, it is invisible in terms of GDP.
Holistically, the main issue of not acknowledging the economic contributions of invisible assets makes them seem less valuable which is not true. A classical example is a homeowner does not directly contribute to the economy via purchases or goods provided as does the exchanges occurred in rent. Likewise, a housewife or caretakers that allow salarymen to do their work deconstructs their importance in society. There is definitely a palpable value to their work that is unmeasured, and consequently dismissed as inconsequential due to the basal level of association usefulness in economic terms.
British statisticians in 2000 found that the total unpaid housework was £877 billion per year. Notably, measuring home production fallaciously lowers the inequality gap. The imputation of counting household chores inaccurately shirks the inequality gap as it did not take into note how the labor put into making one’s bed of a poorer family proportionally contributed more to a household economically than it did of a millionaire’s.
What is particularly intriguing is the advent of new technology, that serves as a black hole that sucks in GDP and eviscerates it. The goal of disruptive technology companies such as those employing blockchain is to wipe out transaction costs and replace them with convenience– to simplify the world. Automation such as printing out luggage passes, home-made meals which would be allotted to housewives have been outsourced, and no longer measurable, allowing those employed in lesser occupations to find work elsewhere. This saves money for airlines and shareholders can get bigger cuts, allowing room for extra consumption. Economy grows!
Through the analysis of invisible forces and work not calculated in the economy, one can conclude that it is not easily decisive to either acknowledge or eliminate invisible workforces in the economy. On one hand, exclusion deems tasks as invaluable as they will be essential of life than what can be easily replaced with automaton in the near future. On the other, inclusion of such work may also eliminate inequality gaps, giving a country a false pretense of a higher quality of life than actuality.
It is best to keep in mind, that even numbers aren’t as simple as they seem.
P.S. I got a few questions if I actually write and maintain and code this blog. Yup! All or most bloggers do host, code, and maintain their blogs and write as a hobby and means to educate you!