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They have had deflation for (decades ?) a very long time, and their debt is approaching 210% of their GDP. Greece had 160% or so...
But Japan's debt is happily financed by its own people & corporations.. Unlike USA & Europe which actually rely in Japan & China to purchase their debts..
Japan could reach 1000% debt to GDP which won't matter because it's all held internally.
It has to do with definitions, mainly how we define economic success. For Americans a successful economy grows all the time. One which does not, is failing. The article is written by someone with a different outlook.
Anyway, mighty Japanese companies which became symbols were ravaged (like Toyota). Japan also suffered a terrible tsunami and nuclear disaster. Sony (another Japanese symbol) is ailing and apparently lost its way. Olympus, the camera company is under investigation for $1B in fraud. And lets not forget the Japanese banking system which reflects all troubles.
Comparing unemployment figures with the US is misleading. Traditionally, Japan had 0% unemployment, so 4% is maybe worse than America's 9%.
And for the record, Japan which had the second largest economy, is today overshadowed by China which grows all the time (as Americans like)
It has to do with definitions, mainly how we define economic success. For Americans a successful economy grows all the time. One which does not, is failing. The article is written by someone with a different outlook.
Anyway, mighty Japanese companies which became symbols were ravaged (like Toyota). Japan also suffered a terrible tsunami and nuclear disaster. Sony (another Japanese symbol) is ailing and apparently lost its way. Olympus, the camera company is under investigation for $1B in fraud. And lets not forget the Japanese banking system which reflects all troubles.
Comparing unemployment figures with the US is misleading. Traditionally, Japan had 0% unemployment, so 4% is maybe worse than America's 9%.
And for the record, Japan which had the second largest economy, is today overshadowed by China which grows all the time (as Americans like)
Actually, a 4% unemployment rate is much healthier for the economy than a 0% unemployment rate. Japan's economy is only overshadowed by China because China's population is ~ 10x bigger. In terms of GDP per capita, China is nowhere near Japan or the US for that matter.
But Japan's debt is happily financed by its own people & corporations.. Unlike USA & Europe which actually rely in Japan & China to purchase their debts..
Japan could reach 1000% debt to GDP which won't matter because it's all held internally.
Also keep in mind that Japan's government actually holds a huge amount of private investment including foreign debt. The government also hasn't deferred necessary infrastructure spending so it won't bite them in the ass later in their future. This goes hand in hand with the strong social and economic safety net it provides for its citizens in terms of unemployment, job training, education, disaster preparedness and health services--were things to become much more dire and cutbacks were necessary, they would fall more towards trimming the fat rather than cutting to the bone. It's not all roses, but it's not as dire as some make it out to be.
Also keep in mind that Japan's government actually holds a huge amount of private investment including foreign debt. The government also hasn't deferred necessary infrastructure spending so it won't bite them in the ass later in their future. This goes hand in hand with the strong social and economic safety net it provides for its citizens in terms of unemployment, job training, education, disaster preparedness and health services--were things to become much more dire and cutbacks were necessary, they would fall more towards trimming the fat rather than cutting to the bone. It's not all roses, but it's not as dire as some make it out to be.
That's a good point. A lot of their infrastructure is privatized (rail and expressways). I think we should try that in the States, especially in Atlanta where the huge issue is the upcoming transportation referandum which might fail.
Japan should be viewed as a model for the western world because economically, socially etc they're ahead..
Jaan's economy has peaked, you cannot just keep growing and they've already reached levels beyond their means, tiny island nation with no natural resources of their own.. Ever since 1990 they've been experiencing low growth.. But the thing is they have handled everything perfectly and as a nation they have advanced and come a long way..
Look at Europe, their economy has slowed and has caused them to go backwards, with riots and everything etc happening..
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