How The Economy Of Japan Could Predict The Next Decade | Economics Explained

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[JJLiew]

Japan's old-fashioned workplace culture is holding them back. Young people are encouraged to dedicate their lives to big corpos rather than engaging in startups. Working corporate also usually has poor life-work balance; I was at a career seminar in Osaka and their presentations even had detailed sections about how you'll be working overtime, which I think would be ridiculous in Western countries.

[fallout]

I think the difference between comparing the fear of Japan's 1980s economy overtaking the US and the fear of China's economy taking over the US today is that even if China overtakes the US's economy, it would only imply the Chinese worker is 1/4 as productive as the average American, while in the 80s, if Japan overtook the US's economy, it would imply the Japanese are twice as productive as the average American

[karisvenner]

IIRC one of the reasons that's often brought up about the Yen's stability is just how massively the Japanese have invested everywhere else in the world, making their currency much less reliant on the performance of the Japanese economy itself.

[andrewmitchell]

I used to live in Japan and saw the end of the boom and the start of the flat lining economy. Even after the economy stopped growing, the crane count on the skyline was staggering. In a regional city, I could see something like 150 large building projects. Stagnation at a high level of consumption is not the same as stagnation at a low level of economic activity.

[simonshawca]

I feel that economic analysis should include more psychology. I feel the brief comment that Japanese people are less likely to ask for a raise is just the tip of the ice berg. We should be analyzing the psychological affects of people's cultural beliefs and attitudes towards economic activities as a key to understanding different economies.

[kunstderfugue]

Considering Japan's culture of obsession with consistency and etiquette, it makes sense to me that they rank high in stability and confidence and also low in growth. It's like the economy reflects the society.

[gothakane]

I'm Irish living in Japan for years now getting paid half of what i did back home. But the cost of living is WAY less here, i can actually save money! And i feel the economy is good even though it's not growing.

[punkcanuck]

Point of order: When US companies come across a large amount of Cash the CEO's first priority to find a way to increase stock prices. Sometimes that's investment in the company, sometimes it's stock buyback. Company investment is by no means guaranteed.

[stjojokaras]

Great video. I live in Japan and I love her. Most people here are not desperate, nor divided, and enjoy stable lives, which means they are happy, and so am I.

[ezforsaken]

Japan -> whatever you do inflation remains the same.
Argentina -> whatever you do inflation skyrockets.

[kevinw]

If the workforce is shrinking, and national GDP is fairly constant, doesn't that mean you're still getting growth per worker? The economy is doing better, just in relative terms, not absolute.

[Pengalen]

As you mentioned, it is unreasonable to expect infinite growth in a finite world. Japan has apparently reached that asymptote, so it seems unfair to rate them low on growth, if technically accurate.

[kek]

Even without continuous growth, Japan has remained among one the most developed countries in the world with the highest living standard.

[maximilian]

Something nobody ever looks at when talking about japanese population and economy shrinking is that japan went from an island inhabited by 40 million people to an island inhabited by 130 million people in under a century. At some point you reach the limits of sustainability. Just as a frame of reference, australia today has a population of 25 million. And even the worst linear demographic projections (which is already unscientific because population growth is sinusoidal and not linear) that people love to quote have japan at a population of more than 80 million in 50 years. (Which would still be double of canada and as much as current day germany).
So I think a lot of "confusion" about how the japanese economy works is due to people not checking their numbers, facts and buying into skewed projections put out there by think-tanks who want to talk up specific issues in an isolated way so they can peddle the solutions for their drummed up sideshows to gullible governments.

[Indeterminite]

13:40 most YouTubers wouldn't bother giving an explanation, thank you for going that extra mile in explaining the chart behavior, that shows professionalism

[corpojp]

Japan is just amazing and having lived there for 11 years there is nothing to compare with Tokyo. The most amazing city on the planet. So many things other major cities could learn from by just seeing how its done in Tokyo.

[newsnetwork]

Japan has basically broken the assumptions of several laws of economics. That is why we need an entirely new 'Japanomics' to study japan.
For example, their labour laws state that companies cannot fire workers at will, and workers won't think of leaving even for low wages because of their culture, so factors of production are really immobile in Japan.
Also, the Japanese notion of loyalty is really strange, consumers feel it is their duty to keep purchasing from a company even if they raise their prices because they wanna stay loyal to one particular brand.

[blankblankpog]

It's not harder to switch salary because there are older people in the jobs.

It's just their culture to stick to one employer until they can retire/die. Some might say this has taken root because of bushido culture but the younger ones are still jumping ships everytime they got the chance especially in heavy R&D business

[horatiokim]

The fact that we get free documentaries on YouTube by Economics Explained is truly a gift 👍

[Majorohminus]

Japan's GDP per capita has been growing since the 2000s and is still growing. Thats actually more than could be said about many advanced economies like in Europe.