World Regions Notes Japan 4 video lecture quiz Video 8: Shinto Slump - Japan is in a Shinto Slump - Rapid economic growth period after world war 2 where they exploded - In the 60s and 70s and 80s they had growth rate o This is what made japan the second richest country in the world after USA o Their technology real estate cell phones o They also held onto their industrial base Automobiles, electronics, steel, ship building Making serious money So much money that it sparked a consumer ban They were already making money selling abroad but now spending in japan That is what keeps American economy growing; this was not the case previously in japan They ran out of things to buy in japan so they bought things in other parts of the world Bought times square or office complexes in Chicago and Miami This was threatening to americans At the same time Japanese car manufacturers in America Mazda, Honda, Toyota Anti-japanese sentiment in American society People thought Japanese cars were un American America was in a big recession at the time What was happening in japan? So many people with so much stuff buying so much stuff; naturally the prices went up and so over inflated and out of control that the bubble bursting was inevitable and it did burst It came down in the 90s Trillions were lost particularly in the real estate markets Very similar to current 2008 recession It was all overpriced and everything came crashing down
Japanese are not historically big spenders they’re usually big savers People at home aren’t buying as much as they used to People aren’t buying as much of the exports as they used to Another recession in late 1990s Thigns continued to get deflated Government was freaking out that they made the interest rate in banks 0 interest rate is zero o Why would they do this? o If they want you to save money they’ll make the interest rates high o If you want people to spend money then they make the interest rate low It’s a waste of time to put money in the bank account Don’t even bother putting it in the bank, go out and spend Go start a business Buy a new car Buy stock o It hasn’t worked!!! o Nikkei Stock Index Major stock trading center for Japan They haven’t had a growth rate for decades If you had put 50 grand in the Nikkei stock index and 50 grand in the fortune 500 in new York, youd have lots in USA but none in japan Part of problem was all the success in the past Keiretsu: interlocking system of government and business Toyota owns part of steel company and steel owns Toyota and government has some of this Worked in 60s and 70s and 80s but right now its not working It is not free market capitalism
You've reached the end of your free preview.
Want to read all 8 pages?
- Spring '08
- japan, self defense force