Economics Explained Japan's Rise and Fall... And Rise Again?
Jan 12, 2024
Explore Japan's economic stagnation since the 1990s and its implications for advanced economies. Discover Japan's decline in technology, low labor force participation rates, and factors influencing housing prices. Uncover the challenges and opportunities for Japan's economic growth, including low productivity and the potential for regaining competitiveness.
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Japan's Unique Economic Stagnation
- Japan's economy led the world decades ago but stagnated since the 1990s.
- This stagnation might predict what all advanced economies face eventually, with Japan first to reach that stage.
Japan's Lost Tech Leadership
- Japan was technologically advanced from the 1970s to 2000, powering strong productivity.
- Now it lags behind global rivals like the USA and South Korea in key tech sectors.
Limits of Japan's Labor Growth
- Economic growth mainly comes from working longer, more people working, or higher productivity.
- Japan can't easily grow by working more due to already long hours and low population growth.