There&#x27;s no particular reason to assume that a more productive business will be more profitable than a subsidised one. That&#x27;s a completely separate question.<p>If industry is more efficient, the Japanese people don&#x27;t need to spend more. The same rate of spending will buy more goods and services, supporting more production by more businesses, generating more demand.<p>You can&#x27;t get away from the fact that the same amount of money spent on production by a more efficient company generates more demand for the things that company needs in order to produce. Production by capital-consuming activities by its nature generates demand.