Early 1990s bubble burst e. Equivalent to DOW i. Major stock trading center for Japan ii. Same $ in DOW and you'd be loaded 1) If you put $50k in Nikkei in 1990 you would have made no money iii. Nikkei Stock Index has flatlined f. Helped Japan when rebuilding i. Means Toyota owns part of the steel industry and gov. owns part of both ii. Not really free market capitalism 1) Takes out innovation and competition 2) Now it's actually a hindrance on economy 3) However: iii. Keiretsu - System where businesses & government are interlocked g. The high standards of living make for high prices for everything i. Tokyo Japan has highest real estate prices ii. Resulting in outsourcing 1) Moving south to S. Korea, Taiwan, China and Philippines a) Moving to lower wage areas 2) High wages for workers iii. World recession is killing them iv. On top of everything else: h. 1980 - Consumer Boom v. Shinto Slump A. Japan (Part 4) Wednesday, March 11, 2015 9:30 AM New Section 1 Page 1 This study resource was shared via CourseHero.com
Lowest overall economic growth rate 1) Population is shrinking a) Fertility rates are ~1.0-1.1 b) Decreasing tax base i) More elderly than young ii) Decreasing population c) Decreasing consumer base d) Made worst by Japanese Civilians: 2) World recession is killing them iv. IE. Toyota is outsourcing to more vibrant economies like China 1) Future of Japanese companies isn't in Japan v. Don’t really like immigrants 1) 99% ethnically Japanese 2) And ROBOTS - everyone will want one a) Raised retirement age, have sex with your spouse day, immigration propaganda 3) Xenophobia - fear of foreigners vi.
You've reached the end of your free preview.
Want to read all 3 pages?
- Fall '08
- Economics, japan, People's Republic of China, Wen Jiabao, economic growth rate