Economics Explained has an interesting video on the topic. After WWII, Japan became the first country in Asia to undergo an industrial revolution and soon became the second largest economy after the US and was by many accounts set to match or even overtake the US. They then suffered an economic collapse due to unchecked growth and speculative markets and decided to never again speculate on the future and just stick to tried and true methods.
Since the 1990s, Japan’s economy has barely changed while other nations have seen huge growth. You’d assume that would mean Japan is now far behind, but they aren’t. They seem to have mastered keeping everything the same for decades without the normal decline that comes with it.
After WWII, Japan became the first country in Asia to undergo an industrial revolution
After WW2? Industrialization during the 20s/30s was the whole reason they attempted to conqueror the Oceanic island states and the Chinese/Korean/Indochinese mainland.
They then suffered an economic collapse due to unchecked growth and speculative markets and decided to never again speculate on the future and just stick to tried and true methods.
The Japanese Economy was undone by The Plaza Accord and The Louvre Accord, which western nations used to devalue their currency and undermine Japanese export prices. The downturn, followed by a financialized corporate consolidation and expropriation of revenues through foreign investment, permanently crippled the Japanese economy in the aftermath of the 90s Asian recession.
What sets countries like Japan, Korea, and the Philippines apart from China is the domestic control of their industries. Their markets are dominated by private equity and fixated on steady profit margins rather than long term public investments. Consequently, the capital cities are flooded with cash and industrial development while the rural areas are devoid of commerce. There’s no shortage of speculation, but its rooted in the private equity markets and focused largely on fictitious capital - debt instruments and their derivatives - rather than real capital or technology.
Chinese investment in the periphery and its rising tide of middle class wage earners is what propels them into the 21st century. They’re the ones building out new transit lines, new public housing projects, new universities, and blue sky research. The Xi Government is openly hostile to speculative investment, doesn’t bother to bail out failing financial institutions, and focuses primarily on expansion of utilities, trade corridors, and mixed us developments.
They’ll survive it, their markets and investments aren’t overvalued like ours are. They’ll crash, re-evaluate their societal priorities, and start to build again
Yeah, but that’s only a problem if elderly orderlies is an underpaid job that no one wants, and if people can’t afford to live on it when choosing such a profession.
If the economy adjusts or society adjusts such that caring for the elderly is a highly sought out and secure job that can easily pay a mortgage, what’s the issue?
This is what I mean when I say they will crash and their economy will adjust.
I spend at least a month in Japan every year and the tech there is great for the most part. All of the critical parts infrastructure tech is brilliant and incredibly stable.
The lack of risk taking is very noticeable though especially when it comes to contemporary software and UX. There just so much broken tech because everything moves so slowly - for example to pick up a reserved train tickets you need to bring the same physical card you made you payment with and thats the only way. So if you used a virtual card or forgot your card at home you’re screwed.
Honestly, sounds great to me. I know they’ve had “issues” (is it really an issue for me if my money becomes more valuable?) with deflation, but I’d be OK with that if it meant no more speculation.
Economics Explained has an interesting video on the topic. After WWII, Japan became the first country in Asia to undergo an industrial revolution and soon became the second largest economy after the US and was by many accounts set to match or even overtake the US. They then suffered an economic collapse due to unchecked growth and speculative markets and decided to never again speculate on the future and just stick to tried and true methods.
Since the 1990s, Japan’s economy has barely changed while other nations have seen huge growth. You’d assume that would mean Japan is now far behind, but they aren’t. They seem to have mastered keeping everything the same for decades without the normal decline that comes with it.
After WW2? Industrialization during the 20s/30s was the whole reason they attempted to conqueror the Oceanic island states and the Chinese/Korean/Indochinese mainland.
The Japanese Economy was undone by The Plaza Accord and The Louvre Accord, which western nations used to devalue their currency and undermine Japanese export prices. The downturn, followed by a financialized corporate consolidation and expropriation of revenues through foreign investment, permanently crippled the Japanese economy in the aftermath of the 90s Asian recession.
What sets countries like Japan, Korea, and the Philippines apart from China is the domestic control of their industries. Their markets are dominated by private equity and fixated on steady profit margins rather than long term public investments. Consequently, the capital cities are flooded with cash and industrial development while the rural areas are devoid of commerce. There’s no shortage of speculation, but its rooted in the private equity markets and focused largely on fictitious capital - debt instruments and their derivatives - rather than real capital or technology.
Chinese investment in the periphery and its rising tide of middle class wage earners is what propels them into the 21st century. They’re the ones building out new transit lines, new public housing projects, new universities, and blue sky research. The Xi Government is openly hostile to speculative investment, doesn’t bother to bail out failing financial institutions, and focuses primarily on expansion of utilities, trade corridors, and mixed us developments.
Japan is on the verge if major economic collapse if they do not increase the population
They’ll survive it, their markets and investments aren’t overvalued like ours are. They’ll crash, re-evaluate their societal priorities, and start to build again
That’s an incredibly optimistic outlook.
hard to function with a negative outlook
I mean every society has to rebuild after a crash, I’m just optimistic that they’ll do it faster
You might want to look into the population studies on Japan. They are pretty bleak
Got a summary? I know the onus is on me, but I’m not likely to dig much further
Within 50 years the population will shrink to 70% of current levels with 40ish percent of the total population being elderly.
Within 50 years, the whole world population is going to shrink dramatically, and it will have nothing to do with declining birth rates.
Yeah, but that’s only a problem if elderly orderlies is an underpaid job that no one wants, and if people can’t afford to live on it when choosing such a profession.
If the economy adjusts or society adjusts such that caring for the elderly is a highly sought out and secure job that can easily pay a mortgage, what’s the issue?
This is what I mean when I say they will crash and their economy will adjust.
That’d require significant societal change to an environment where having children is actually manageable
Which is why this is a problem
I spend at least a month in Japan every year and the tech there is great for the most part. All of the critical parts infrastructure tech is brilliant and incredibly stable.
The lack of risk taking is very noticeable though especially when it comes to contemporary software and UX. There just so much broken tech because everything moves so slowly - for example to pick up a reserved train tickets you need to bring the same physical card you made you payment with and thats the only way. So if you used a virtual card or forgot your card at home you’re screwed.
Honestly, sounds great to me. I know they’ve had “issues” (is it really an issue for me if my money becomes more valuable?) with deflation, but I’d be OK with that if it meant no more speculation.
I hate inflation based economics. So ngl, japan seems really nice in that regard