However, in view of the fiscal burden that will be required to support the aging society, it is uncertain whether domestic sources of funds alone might continue to assume such a burden. The surplus in household funds is on a downward trend and firms might cease to hold surplus funds due to the changes in corporate investment behavior.
This occurs principally because a rise in structural productivity growth, not surprisingly, fosters higher expectations for long-term corporate earnings. These higher expectations, in turn, not only spur business investment but also increase stock prices and the market value of assets held by households, creating additional purchasing power for which no additional goods or services have yet been produced.