Macro Effects of massive Earthquake upon Economic in Japan 2011 to 2013

Only available on StudyMode
  • Download(s) : 41
  • Published : December 6, 2013
Open Document
Text Preview


“Macro effects of Massive Earthquake upon Economic in Japan 2011 to 2013”

Macro Economics
June 27, 2013

For: Dr. Sarri, Samuel
Nevada State Higher Education, Summer 2013

I, the undersigned, IQ, hereby, certify that this Macro Scientific Research Paper is the result of my own intellectual and scientific endeavors.

Date: 6/27/13

Index

1. Title page----Page 1

2. Disclaim ----Page 2

3. Index----Page 3

4. Introduction-- Page 4

5. Thesis: The Earthquake Impacts on Economic Flow and Stocks---- Page 4 6. Impact on Japanese Macro Economy–--Page 5
7. Antithesis—Page 6
8. Synthesis--- Page 7

9. Bibliography—Page 9

10. Exhibition----Page 10

Introduction

In this Macro Scientific Research Paper, my methodology as follows. First, I shall analyze the Great East Japan Earthquake and Tsunami, which happened in March 11, 2011. Second, I will diagnose macro interaction to the earthquake with the disaster mitigation policy of Japan. Third, I will extract some specific macro results and propose specific solutions.

An earthquake of magnitude 9.0 and a tsunami hit the pacific coast of northern Japan on March 11, 2011. It will have a significant negative impact on the Japanese economy now and will continue to affects Japan in the future. The earthquake also caused a high tsunami which breached the safety of nuclear plants in Fukushima prefecture. What is worse, though, is it caused a partial meltdown, and now Japanese citizens not only suffered by damage of earthquake itself but also the dangerous level of radiation from the plants. On June 10th 2013, a Japanese National Police Agency announced there were 15,883 confirmed deaths, 6,145 injured, and 2,671 people missing, as well as 126,458 buildings totally collapsed, with a further 272,191 buildings 'half collapsed', and another 741,684 buildings partially damaged("Countermeasures”). This is the largest economic shock for the Japanese economy since the end of World War II. It may take some time before the full economic impact of the earthquake is known, but we can still look at the scale of earthquake economically by comparing it with the Great Hanshin-Awaji Earthquake of 19951 in Japan and how it affected on the economy. Thesis: The Earthquake’s Impacts on Economic Flow and Stocks There are two important points to consider concerning the impact of this catastrophe: flow and stock. Flow is economic activities in everyday life, such as spending, production, income, and many other economic growths. Stock is a concept representing the abundance at some point in time, such as housing, factories, and social capital and so on.

The flow of economic activities was damaged by the earthquake and tsunami. First of all, the earthquake and tsunami caused an impediment in physical economic activities such as production and consumption in the disaster area. Next, they cut off the distribution to the disaster area, and the connection between products and point of consumption was no longer smooth. Thirdly, it affected consumers psychologically. Less people spent money for entertainment and leisure, and the economy experienced a sharp downturn in consumption. At the time of the Great Hanshin-Awaji Earthquake, the consumption and production activities fell immediately after the earthquake, but the economy slowly recovered which is mentioned later at the Impact on Japanese Macro Economy. In comparison, the Great East Japan Earthquake and Tsunami is larger than the Great Hanshin-Awaji Earthquake, and it caused nuclear power plant accident which caused serious radiation problem and the huge power outages. It got goes worse and worse, and it will have a quite long effect on its economy. The earthquake and tsunami also caused a large loss of stocks. Stocks that...
tracking img