Takes out innovation and competition and this is what keeps businesses vibrantAs their consumer base economy is too-Extremely high standards of living oMakes for very high prices of thingsoTokyo is one of highest standard of livingoBecause prices are so high wages are so highoSo what?Look at bigger pictureThey have been hemorriging jobs out of japan like they do in USAOutsourcing occurring in both countries and occurring in the same directionsDue south to lower wage areasIn USA lost to lower wage areas in Mexico and latin America and chinaIn Japan same story, to South Korea, Taiwan, Phillipines and chinaIt’s the same but on opposite ends of the pacific-World recession oAll of this in combo has made japan the most stagnantoOf all the rich countries japan has the lowest growth rateoNot going to changeoAnd has been made worse by people of japan themselvesTheir population is shrinkingPeople are not having kids127 million people there now but every year it gets smallerdecreasing work forcedecreasing tax baseincreasingly old people; old people brackets getting bigger so theres now more old people than tax payersdecreasing consumer baseeverything is working against japanfuture of a lot of Japanese companies is not in japanToyota: why would they invest in japan? It costs too much money; population shrinking; frugal; already rich and already have cars; they’re moving to places with more vibrant communities china and india
oXenophobia: fear of foreignersThey don’t like immigrantsIf you go to visit you’ll be welcomed but they don’t like foreignersThis has got the government in a pickle They have a stagnant economy The government is saying what the hellSoftened the concept of immigrationRaised retirement ageWork till you dieThey have a go home and have sex day to increase fertilityRobots! Will increase productivityWe wont need workers or immigrantsThey’ll do the jobs in factory and then people will buy themoThey’re politically stagnant as welloSince world war 2oConstitutional monarchyoEmperor and prime ministeroEmperor is figure head like UK oTwo party system but one party has won the whole timeoCenter right partyoTo be in the government you are related to someone in the governmetoAlmost prime minister or positions are sons or daughters or grandsonsof peopleoVery closed system, makes for not that much progressoPeople so pissed off that there has been a prime minister parade for the last 5 yearsNo prime minister lasted for more than a yearQuitting because nothing is getting doneTired of stagnationDivided about how to get economy goingDivided about corrupt systemImiigrationSupport in ira
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- Spring '08
- japan, self defense force