Japan’s Rise and Fall... And Rise Again?

Japan's economy has been stagnant for 2 decades, and while some economists look at this as an outlier, it might be something that just happens to all advanced economies, and Japan just got there first. After suffering the "lost generation", can Japan come back and recover growth, or is their fate one we will all eventually reach?

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[IndependenceCityMotoring]

My take as a CPA (background in economics): everyone is hyper-obsessed with Japan's plateaued growth, without realizing that they enjoy a very high standard of living, very high per-capita GDP, and much lower inflation than other countries. And really, growth for growth's sake is not really that important once you've achieved the upper echelon of economic performance.

[kgsrevy]

I am now living in Japan lived in Western Europe. As the statistics says, the salary in Europe was higher but didn’t feel a rich country as a citizen. Increase of living costs, high crime rate, e.t.c.
On the other hand, except for the salary, living in Japan is like a being in a real home. Delicious and cheap food, reliable public order, low unemployment .
It’s true that Japan is struggling with problems though, this nation is still a powerhouse and has a potential to regrow.

[Frisbieinstein]

I lived in Japan. Their goal isn't growth, it's a stable society that benefits all.

[noxnox]

From my perspective as a middle-class Japanese family living in Japan, it is true that the economy has been stagnant for 20 years and is slowly declining further.
However, prices have not fluctuated much, and salaries have risen slightly in line with the fluctuations.
I don't know about other countries, but if I can maintain this situation, no more, no less, I'm fine with it.
I believe that long term stability is the only way to have a better outlook on life and to be happy in the future.
Life is not a gamble.

[sunkuu]

The zoning in Tokyo is really fascinating. Just walking around it feels so alive and integrated. Even in residential areas you’ll find shops, and in busy areas you’ll find quiet residential houses. I personally love the atmosphere and convenience of Tokyo.

[huleboermannhule]

As a norwegiam who has lived in Japan, there are many good points here. While the slow growth of the economy might look bad on economic figures, it does not matter much to most people in Japan as they are already living quite well and most goods they consume are produced locally. I think many other countries should look to Japan as a way to live with low growth, but still high quality of life.

Things like smaller homes might look worse on paper, but Japanese homes are very well built to use to space availible, and it is so cheap to eat out that almost all social gatherings happens outside the home.
That was a big differnce coming from western Europe, where workers are paid so well that it does not make economic sense to have very cheap food, but Japan can handle that without larger issues.
The work culture in Japan is also changing as alot of the extra hours were not value generating, but part of a culture of staying at work for long, even if you finished all your tasks.

[JW-dchk]

Japan is not broken. They are not just a country of mere numbers. They are a country of people with very good human values. They will be just fine

[galamotshaku]

Dude I live in Japan and the living standards for the working class are way higher than the U.S on average. It might not be the case if you take a small demographic of rich tech workers in California as an example, but here regular people actually have access to quality public education, transportation, healthcare, affordable groceries, housing and general public infrastructure.

[seasong]

I think we also have to understand the shortcomings of GDP. It can be made to look larger just by just starting a lot of construction projects, or even taking on debt. It really is not saying a lot about how efficient the economy is operating.

[languist]

Japan indeed had a rough start in 2024. I wish all the best upon those who have been affected by the earthquake and aircraft accident.

[greatofray]

You did not mention the tradewar between US, Americans have compressed the Japanese technology advancement in different ways, also the currency rate. These are the true underlying reasons.

[wingwaabuddha]

I live in Japan and work in Japan as a foreigner. Foreigners are everywhere now in Tokyo and elsewhere.. obviously still a small percentage ... but convienent stores have foreigners working there, unthinkable 15 years ago. I just don't agree with this video --- I have been trying to move from poorer asian countries all my life as a teacher. I made way more money in Vietnam and China, but I hated it there - pollution, government nonsense, loud, motorbikes, food safety being awful. I know this is an economics channel, but some things are hard to measure by money. Japan is special, it always has been, it attracts people in part for that reason. Of course the irony is, what we all love about Japan simply won't survive if tomorrow 10% or more of Japan were migrants. Japan is a great place, I make far less money, even considered poverty level in US, but I won't get shot, people follow the rules, and its ---- get this crazy idea ---- NICE.

[EzekeilMaxwell]

"Japan is the country that has been living in the year 2000 since the 1970's" this is the best quote to describe a country

[harttdm]

So Japan’s economy is functioning well despite decades of stagnation, and only having issues because the rest of the world insists on growth for growth’s sake, weakening the Yen. Sounds to me like the problem is the world, not Japan. I hope in my lifetime I can live in a country that isn’t obsessed with constant growth. Growth is the economists’ “turtles all the way down” - always demanded but never truly justified. If anything, continuous growth is causing the decimation of our planet.

[illuminatedtiger]

I'm a foreign Software Engineer working in Tokyo and I've never worked more than 40 hours a week. Salaries in my field are comparable to what you would earn Australia and Western Europe. There's some truth in terms of how large the homes and apartments are, but if you're making 15~20M+ JPY you won't be living out of a shoebox.

[thomasrowe]

when the Japanese economy was growing non-stop Japan was pressured by the US into signing the Plaza Accord and thus crippling its own economy and entering into a major recession today known as the Lost Decade. Not happy with that, the US went ahead and simultaneously placed 100% tariffs on Japanese electronics. Tariffs Japan wasn't even allowed to match or even retaliate in any way.

[TheBirthdayhat]

living in the early 2000 doesnt sound so bad compared to now.

[eagleeyez]

the younger work culture in japan is shifting. they know that being overworked isn't beneficial to the society at all.

[clicheusername]

I can't remember if you brought it up but, in my opinion, an underrepresented issue in Japan is their view on failure. In America, we view failure as a part of the process. Someone starting a company and failing is mocked but not looked down on, if that makes sense. In Japan, failing is viewed much more negatively, and someone is very unlikely to try starting a company or even modifying their own company for fear of failure.

[cherubinth]

USA is funny on paper such a giant economy, but in reality it feels like a developing country.