How The Japanese Economic Miracle Led to Lost Decades.

From 1991 through 2001, Japan experienced a period of economic stagnation and price deflation known as "Japan's Lost Decade." This was caused by the collapse of an asset price bubble in late 1991. The term originally referred to the 1990s, but the 2000s and the 2010s can be added to the list due to the country’s economic stagnation. We’ll look at the postwar Japanese economic miracle, the bubble economy of the late 1980’s and the lost decades that Japan has experienced since. We will also discuss any overlaps between the Japanese Economic miracle and the last thirty years of growth that has been seen in China – and discuss to what extent history could repeat itself.

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[minghengtan]

That sarcasm towards Harley’s innovation was delivered with a straight face 😂

[ffbcrb]

Love Mr. Boyle, his dry sense of humor is unmatched.

[peterpayne]

Really glad I found your channel. I'm an American living in Japan for 32+ years, running a business and blogging for most of that time. I came here in 1991 and didn't realize it at the time, but it was right as the bubble was bursting.

[johnc]

Excellent review. I've been to Japan seven times since 1973. As a young sailor on that first trip, I was amazed at the business and industrial activity in Tokyo, Yokohama, Kure/Hiroshima and Sasebo. The culture struck me as astonishing beautiful (helped that I was lucky enough to meet a dual-degreed, bi-lingual -- and very lovely -- Japanese girl who showed me around in Hiroshima... one of my best memories.) In the 1990s and I had five more trips (1 more in the Navy, 5 with Toshiba) and saw a changing Japan. The Narita airport bookshelves still had titles about the Japanese economic miracle, but they were gathering dust by then. Japan was less exuberant and rambunctious than I remembered from my first trip (where I was simply a visitor taking in the sights for the first time). The Japanese are patient and resilient, but they do have more troubles now than before (or at least those troubles are more apparent, now). I have the deepest respect, admiration, and love for their country and culture and hope that their resilience and intelligence helps navigate the future. Japan has announced its opening to "foreign, independent travelers" as of Oct. 11, 2022. My wife and I are planning trip number 8 to Japan for next spring!

[chancerobinson]

As some who has lived through “The Japanese Miracle” as an adult, it reminds me very much of Warren Buffet’s saying, “When the tide goes out, you can see who’s been swimming naked.”FTX shares, anyone?

[syf]

I am one of those who read all those japanese management books in late 2000s. Never thought about the macroeconomic and cultural aspect of the Japanese miracle. This was eye-opening. Thanks Patrick!

[GeorgeSmileyOBE]

I think a seventh worthy driver of Japanese growth was their early embrace of the quality revolution. W. Edwards Deming had tremendous reception in Japan before American firms adopted “quality is job 1.” Folks shifted from consuming just any old crap, to preferring a quality product. Honda and Toyota, Sony and Canon, Sanrio and Manga, did not come from nowhere, and were ahead of the curve.

[PBoyle]

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[LtColVenom]

The quality of information in this video and the level of expertise in its summarization is astounding to me, especially compared to usual youtube fare. I will explicitly sign in to the sponsor's service just in recognition of your brilliant work. Thank you very much indeed.

[Mercurite]

Though there are many videos on the Japanese economic miracle/the bursting of the bubble here on YouTube, it's exceptionally rare to find one which gives such an accurate and comprehensive overview of the entire thing, not just looking at the 1980's and beyond, but also at the very start.

Kudos.

[annaczgli]

Brilliant analysis. I love your history/economics focused episodes.

[josephmassaro]

I remember the mixed response in the US during the 80s when it came to Japaneses businesses. A lot of blue collar workers were becoming very anti-Japanese seeing them dominate American businesses like the automotive industry. People also resented Japanese companies buying American property. On the flip side, execs of all stripes saw Japanese businesses as something to learn from. Books having nothing to do with business, like the Book of Five Rings, became must reading. Later Chinese books like the Art of War followed that same philosophy. It was all very strange.

[seanferguson]

Good summary. Not only does it explain how Japan's economy got to where it is today but it also puts paid to the reputation of business and economic reporting about Japan over the last 40 years.

[soupwizard]

I'd like to see a part 2: the Future of Japan. Where does the Japanese economy (and society) go from here?

[andred.]

Cheers from Brazil!!!

Looking forward for this video!

[m.streicher]

I love your history oriented projects.

[johnnyboyzZ]

Not enough people are appreciating that Harley Davidson burn lol 😂

[littlebrit]

Many Japanese management techniques were implemented around the world, like just-in-time inventory management, employee rotation system, main bank conglomerate etc.

[anefriend]

Loved it where you synced the part about 'redistributing and equalising income' with a Robinhood rendering.

[AlwaysHopeful]

At about 12:45, Patrick puts forth the idea that Japan's growth had less to do with productivity and more with finance in the 80s. "A sharply undervalued currency and low interest rates." I hadn't considered that. I've worked in production and the Japanese quality model, rooted in American Edward Deming, is sound, but I now think that internal quality is a company-micro issue and that government finance policy is the macro issue that has a greater effect on company profits. In other words, "You can't fight the FED." It also demonstrates how complex international finance is.