The Economy of Japan: how a Superpower Fell from Grace in Four Decades

Рет қаралды 1,687,640

Күн бұрын

In 1989, the world was simultaneously fearful and in awe of the rise of the magnificent Japanese economy. So…. What the hell happened?
WANT TO HELP ME PRODUCE MORE CONTENT LIKE THIS?
△ Liked the in-depth research and want to help me do more? Consider buying me a coffee at ko-fi.com/moneymacro
△ For some extra benefits consider supporting me longer term on: / moneymacro
△ Finally, for other one-time donations: www.paypal.com/donate?hosted_...
△ Interested in other country economic case studies? • Country Economics
△ Want to know about central banking? • Central Banking
△ Interested in bubbles and asset markets? • Explained
5 BOOKS THAT INSPIRED THIS CHANNEL
The Narrow Corridor: States, Societies, and the Fate of Liberty: amzn.to/3gr6pSV
Money Changes Everything: How Finance Made Civilization Possible: amzn.to/3mt3xbY
Adaptive Markets: Financial Evolution at the Speed of Thought: amzn.to/3sCkS3a
House of Debt: How They (and You) Caused the Great Recession, and How We Can Prevent It from Happening Again: amzn.to/3gqXNeZ
The Third Pillar: How Markets and the State Leave the Community Behind: amzn.to/382Agwo
Narrated and produced by Dr. Joeri Schasfoort (University of Cape Town & University of Groningen)
/ joerischasfoort
/ joeri-schasfoort
Script and Sources:
Check out the sources (a.o. Richard Werner's books, Bank for International Settlement speeches, and Japanese newspapers) that I used for this video in the the script that you can find on my blog:
www.moneymacro.rocks/2021-03-...
Timestamps:
0:00 - introduction
1:20 - 1980s
8:03 - 1990s
14:46 - 2000s
21:34 - 2010s
29:19 - the future & conclusion
Attribution:
clips trump protest: CC John Doyle
clips from Migrant rights protests UK CC Steve Eason
clips from Colorado immigration protests CC Unicorn Riot
clip Japanese politicians CC douga bubble
clip Disneyland opening CC Shatner Method
picture Orban & Putin CC Kremlin.ru
picture Helicopter money CC TGCP
Songs:
Ishikari Lore by Kevin MacLeod is licensed under a Creative Commons Attribution 4.0 license. creativecommons.org/licenses/...
Source: incompetech.com/music/royalty-...
Artist: incompetech.com/
Further description:
While Japans economic might is still widely respected, it used to be the rising superstar of Asia. How did the economy of this Asian archipelago, which came so close to overtaking America as the number one economic superpower, end in deflation and stagnation?
I mean, by now it’s gotten so bad that the Bank of Japan, in a desperate attempt to turn this situation around, has bought up to 70% of government debt and has even become the biggest shareholder of corporate Japan.
This mini-documentary covers the period from 1979 till 2021 and spans Japan's asset bubble decade (featuring window guidance and the housing + stock bubble) as well as the three following decades that were characterized by debt-deflation and a banking crisis, the inflation expectations trap and population decline, respectively. It also has a critical look at Abenomics (from prime minister Shinzo Abe) and contains recommendations for the future of the Japanese economy.

Пікірлер: 4 600

@MoneyMacro 2 жыл бұрын

Liked the in-depth research and want to help me do more? Consider buying me a coffee at ko-fi.com/moneymacro Or for extra in depth content and access to an exclusive Discord community consider supporting me longer term on: www.patreon.com/moneymacro

@user-nf9xc7ww7m 2 жыл бұрын

Probably a silly question, but isn't the central bank technically part of the govt? Sure, its "independent", but it is a creature created by the state. So could not one technically say the govt is buying its own debt and printing its own money? God, I wish I was a currency issuer. I'll do some quantitative easing on the bar and stores. 😋

@MoneyMacro 2 жыл бұрын

@@user-nf9xc7ww7m For sure. While technically independent... they very often practically are not independent.

@ankitait2 2 жыл бұрын

@@MoneyMacro Do you think incentivizing micro, small and medium enterprises through grants, subsidies etc. (USA does that to a an extent with their startups, or at least certain US states do). I feel the big 3 of the Asian Economies i.e. China, Japan, South Korea put too much money in the hands of large corporations who either price out, or flat out just buy and remove smaller competitors. Less competition also incentivizes these companies to lock money in assets like real estate, stock buybacks and dividends and not invest money in R&D or other growth programs.

@Gnefitisis 2 жыл бұрын

@@ankitait2 I think you're right. Japan is famous for large mega corporations or keiretsu. Look up the "Big 6," now I bet you will probably find something in your home made by those corporations, unless you refuse to buy Japanese (for whatever political reason).

@thegeneralist7527 2 жыл бұрын

Great analysis, but I think you have to emphasize the negative impact of high taxes. High taxes have many negative feedbacks, both on corporate investment and growth and personal initiative and growth. The reward for higher revenue and growth are higher taxes - not an incentive at all but a disincentive. This is the perverse logic of socialism and communism. Why work hard and grow when the state will only take what you have earned and squander it? Why work hard and take risks when the state will take care of you in any case? Why bring in another generation of wage slaves when you know their future will not be any better than your own, and more likely worse? People vote with their time as well as their money. Worry about COVID, 'climate change' and other imaginary evils only worsen the disincentive to work hard and take risks. No risk, no reward. In the absence of a reward people do nothing. High taxes are a punishment for being successful and a disincentive for efficient government and good governance.

@bryanvo7749 2 жыл бұрын

A country that has been in constant economic crisis for almost 4 decades now and still among one of the richest countries in the world. They must have been insanely rich back in the 80s.

@eIectrostatic 2 жыл бұрын

A country that builds up a world-leading technological base can afford to be in constant economic crisis. The real trouble only begins when it starts falling behind technologically and regresses in the global industrial and logistical food-chain. Which is what is now beginning to happen with Japan, though there's still some way to go before this will be felt by the Japanese.

@papabear90 2 жыл бұрын

Hence why the US sanctioned them

@zoey5104 2 жыл бұрын

Japan's GDP/capita was higher than US and all of Europe (except Switzerland obviously) at late 80s until 90s.

@matthewrogerson9119 2 жыл бұрын

@@BWong1234 collect 50 cents

@wangyingsen458 2 жыл бұрын

As an economic colony of USA, Japan have to surrender in the digital competition, Japan give up the leadership in semiconductor field voluntarily.

@joni1405 2 жыл бұрын

"There are 4 types of economies: Developed, undeveloped, Japan and Argentina" - Simon Kuznets

@paulc7400 2 жыл бұрын

Okay, I with a burgeoning interest in economic knowledge, what is like one sentence that will basically inform me of Argentinian economics?

@El-s 2 жыл бұрын

Basically, their economy gets out of the mud, they don’t spend it properly, ultra inflation, economical downturn, repeat

@paulc7400 2 жыл бұрын

@@El-s So broke folks mentality around here as in they get money, don't know what to do with it, then spend/lose it all and become broke again. Thanks for the reply

@alangivre2474 2 жыл бұрын

I'm argentinian :,(

@alangivre2474 2 жыл бұрын

We got 50 years of economic stagnation, high stagflation, and the most volatile economy of the world, based on dollar denominated debt that goes to carry trade.

@Bestmann3n 2 жыл бұрын

I live in japan. People here save like crazy. It's actually kind of insane. It would be interesting if you made a video on the japanese housing market. It's quite different from most countries in the west. There is no housing shortage here, even in places in Tokyo and Osaka, which is a blessing if you have lived in any major western city. On the other hand, buildings themselves don't seem to hold value. Investing in a home and making a profit isn't really a thing here. I wonder how that affect things like mobility. If you buy a house here in Japan you are never going to get that investment back unless the land itself goes up in value so why would you ever sell your house and move?

@lukaradojevic7195 Жыл бұрын

Houses are not supposed to be speculative asset in the first place,why would you think that you should get rich just by buying and selling houses while not building anything in the process.

@MrSupernova111 Жыл бұрын

@@lukaradojevic7195 . Absolutely! My greedy American counterparts can't seem to understand that profiteering of residential RE is the same as leeching on the back of the working class. Its a disgrace that in the US you need to be in debt for a lifetime in order to own your home.

@raczgabor659 Жыл бұрын

@@MrSupernova111 The comment still points out an interesting aspect: if residental (working class people) also cant turn their home over for profit, doesn't that hurt mobility? I dont know how high is the geographic mobility in Japan, but with higher mobility, the working people have better bargaining power with wages and that would push them up.

@natheayn6111 Жыл бұрын

@@raczgabor659 If all houses are increasing in value then for the purpose of mobility, owners are just running in place and it shouldn't make a difference. What matters is relative movements - if your rural home goes up 10% or 10k while an urban home goes up 10% or 20k, that home has gotten farther away for you - decreased mobility. Non-owners especially would have decreased mobility over time if we're talking about where they can own, as prices run away from them. So, rising home prices hurts mobility and exacerbates economic inequality while stagnant prices are actually good for mobility. It would be harder to move to another country and buy property if yours has stayed flat while that country is rising though. You also can't use appreciation on your home to subsidize your lifestyle then, so appreciation or bust!

@user-fn8in9lo4h Жыл бұрын

japan，china not japan，japan is part of china🇨🇳you learn history go

@CausticLemons7 2 жыл бұрын

This was the first video I've seen from your channel. I really appreciate how you ask for feedback from those people perhaps most qualified to give it. Overall this video seemed very in depth and covered many of the often complex mechanisms of economics. I feel like I learned a lot about Japan, modern economies, and how people affect each other. Thanks for your hard work!

@youcantata 3 жыл бұрын

You missed few points: Japan missed digital revolution train. 1. Japan is slow to improve worker productivity using advanced IT/network technology. 2. They were slow to invest in growing digital industry like semiconductor, display, smartphone and software. 3. Advent of strong competitors like South Korea, China and even Taiwan. 4. Low worker wage and long work hours, which led to low consumer spendings and low fertility. 5. One-party politics: no political impetus to innovate society and industry.

@MoneyMacro 3 жыл бұрын

Fair points. I'm wondering though... don't a lot of these also count for e.g. Germany? Which didn't have that much a fall from grace. With the exception of one-party politics of course. Good point!

@dimelo3027 3 жыл бұрын

Too young sometimes naïve. Many things happening behind closed doors, Japan companies being sold out to foreigners, like how Nissan hired a CEO from Brazil who turned out to be very corrupted and ruined Nissan. Japan is under the stronghold of American control.

@Nozawachter 2 жыл бұрын

I agree Japan did miss digitization train (bus), but that’s like saying Amazon will destroy all book stores… and it was true Amazon was destroying All book stores until Borders went Bankrupt and Barnes and Nobles was the lone survivor and actually did better because they were the last champion of brick and mortar for all those who still know that experience, won’t let that die. Now Amazon has their own brick and mortar stores trying to plunge that knife into them which seems very unsportsmanlike to me… But anyway, I think this example says a lot. EV car revolution will probably kill most of the current players, but it will allow small companies like Mazda a small lease on life as it attracts business from the aging fans of combustion engines. Likewise, a lot future speculation doesn’t take into account how humans can’t let go as they age, and the oldest demographic, is the one that still has money in Japan. I feel the digitization train that was missed was touted as a if you miss it you will be left behind, but I’m not so sure it’s destination was a sure success. My feeling is Japan will actually be a trailblazer because of being on the frontlines of having a slivering population and that will allow them better thread the needle and find the best landing spot between “efficiency at all costs” from AI / Robotics, and not throwing the elderly under the bus because of changing times. And even if they can’t thread this needle, just like stated in the video with all news-outlets self censoring the long bank lines for greater good. Japan had this “best for society hive mind” rare in other societies. If things really got bad, that could kick in and swing popular opinion in a heart beat. If things really got bad, I know you will see many elderly volunteering to no longer become a burden on society. When Fukushima happened, many elderly volunteered (but were rejected) to be onsite communications relays in the contamination area. I think it is human nature to not want to burden those you love, and to find a way to contribute and be remembered.

@miraphycs7377 2 жыл бұрын

one word. Plazza accord.

@pygmalion8952 2 жыл бұрын

@@miraphycs7377 that is two words.

@MGood-ij1hi 2 жыл бұрын

I remember when , on paper , financially Tokyo was more valuable than the entire USA ; and Japan Inc. was going to rule the world. Anxiety over Japan was real. Now when most people think of Japan they think about animae.

@MGood-ij1hi 2 жыл бұрын

@@pinkcichlid Oh yes, good point.

@DansBLACKFLAG 2 жыл бұрын

@@MGood-ij1hi I think hot coffee from vending machines. Oh, and panties.

@hungchoonghow5857 2 жыл бұрын

And porn...

@knowvoid9958 2 жыл бұрын

They worked so hard that they forgot to have children to inherit and keep the system going. No one thinks they are ready for a kid but you have to do it anyways, luckily people in America are irresponsible enough to have a stable 2.1 birthrate thus making the economy stablish at least more than a bad population country.

@calvinborelli3671 2 жыл бұрын

@@knowvoid9958 we don't really have a sustainable birth rate, we just subsidize it with immigration

@lutenic6111 2 жыл бұрын

Japan lost the early market lead they had in Lithography sector rather too easily without even trying. I am a IT professional and we have lot of Japanese clients and I was shocked to see how rudimentary applications and websites were of our Japanese clients. Even phone apps were simply weblinks for their main websites for long. They missed the IT and Digital bus for sure

@muhammadhassankiyani8953 2 жыл бұрын

What technology do you work in?

@AkamiChannel 2 жыл бұрын

Yes. One part of it is that software developers also sometimes need to be somewhat good at English in order to thrive in their field. It makes it that much harder. I know people who have quit software development because of this.

@coyotepeyote 2 жыл бұрын

Many Japanese companies still use fax machines as well, it's kind of an odd feature of modern Japan.

@johnl9361 2 жыл бұрын

The was a thing called the Plaza Accords where Regan basically said "you are gonna nerf your high tech industry or else our Marines are gonna fuck your shit up".

@muhammadhassankiyani8953 2 жыл бұрын

@@johnl9361 But, in the end, your marines got fucked up by the ragtag militias of Afghanistan. Japan was weak. It had no support from other neighbouring countries. USA had support of entire Europe + Australia + New Zealand + Israel etc. Japan has failed at making alliances. It should have made an alliance with China, ASEAN states and both Koreas the moment America threatened them.

@_aiborie Жыл бұрын

Wow this video was so well made! Thanks so much for breaking this down into digestible chunks or sections. Really helpful for casual viewers like me.

@user-jg1rh4bg4o 2 жыл бұрын

I'm a Japanese high school student and I was benefiting from the boom when my parents were in their twenties I've been in recession since I was born. Damn.

@delvinrb 2 жыл бұрын

at least Japan didn't go from rich to poor country

@craigthebrute8339 2 жыл бұрын

@@delvinrb worse, they went from a young country to an old country

@lucadesanctis563 2 жыл бұрын

Me, an Italian: first time?

@holgerjahndel3623 2 жыл бұрын

Also the pension or rent system of Japan is problematic.

@craigthebrute8339 2 жыл бұрын

@@holgerjahndel3623 what is that system?

@Duck-wc9de 2 жыл бұрын

in japan: media, individualy, decided not to report a situation in the best interest of japan in portugal: a television channel announced a news that was not entirely true and a bank that was going through difficult times collapsed

@olympia5758 2 жыл бұрын

Wait, what? Please elaborate more on this. I am interested.

@Duck-wc9de 2 жыл бұрын

@@olympia5758 Banif was a Portuguese bank that went bankrupt in 2015, allegedly due to a news that TVI (second most important television channel in Portugal) released on December 13, 2015, announcing the closure of Banif, in fact, the government Portuguese only mentioned that he was going to investigate the bank and it could be closed if the investegation lead to, but the news said that the bank was going to fail, which resulted in losses of 984 million euros in deposits, according to the Public Ministry of portugal. this is an article from on MP: “Following the news, Banif's liquidity situation deteriorated due to the decrease in customer deposits, which fell by 984 million euros in a week. such content was harmful and offensive to the credibility, consideration and prestige, trust and reputation” of Banif. TVI's news has precipitated the closure of Banif, given the rush of the Bank's customers to withdraw their deposits, as they thought that the bank that only had a government investigation into a problem was going to collapse. this led to the bank actually collapsing.

@olympia5758 2 жыл бұрын

@@Duck-wc9de Wow, that is fucked up. And was TVI even held accountable for destroying the bank? That's just so unfair.

@jwadaow 2 жыл бұрын

The media has got worse since then.

@olympia5758 2 жыл бұрын

@@jwadaow The media ruining your life over a comment made 15 years ago is one thing, destroying a whole fucking bank is another. And they weren’t even held accountable for doing it.

@jiawei309 2 жыл бұрын

Excellent content. This has to be one of the better, if not best, KZfaq video essays discussing Japan's economic stagnation short of a full blown university lecture. Looking forward to your future content!

@myczxr 2 жыл бұрын

finally brought myself to watch this video, and i have to say i thoroughly enjoyed it. i'll be sticking around for more of this, great job!

@hungchoonghow5857 2 жыл бұрын

Remember "Back to the Future 2"? Bob Zemeckis envisioned 2015 to be when most Americans had to work in Japanese corporations. Because the movie was made in 1989. How things have changed since then.

@WeWaltRun 2 жыл бұрын

huh wow, I guess the same is true in Die Hard too with Nakatomi Plaze

@paulklp8262 2 жыл бұрын

Blade Runner, Cyberpunk 2077.

@leonhenry4861 2 жыл бұрын

Switch Japan for China

@davism3800 2 жыл бұрын

MCFLY!!!!

@pacoramon9468 2 жыл бұрын

Just change the Japon for China, nothing has changed.

@wacky6136 2 жыл бұрын

The 1980's thru the 1990's were Japan's Golden Years. The days of the Sony Walkman! Thanks for the video.

@raifikarj6698 2 жыл бұрын

Hmm yeah but with that golden year coming in with them is the end of a bubble. Because it was just temporary or short term. One thing i noticed is it was because Plaza Accord and the US want to stop Japan succesfull exports industry to destroy USA economy. So by switching the stable rise of the economy they got into traps that give insane boost in short term by borrowing the future this result after the golden era ends Japan enter the depression with no real clue how to get out of it.

@allanmetsar123 2 жыл бұрын

Sony's walkman was to the 80-ies what iPhone's been to the 2010's

@armonepaiomar6243 2 жыл бұрын

1970's-1990's were the golden age mine you.

@supahsmashbro 2 жыл бұрын

Until the Plaza Accords

@madsam0320 2 жыл бұрын

It seems there is no magic wands to revive the economy, but to produce tangible goods and services for the consumers.

@AlfordLau 2 жыл бұрын

Wow, finally an indepth video made easy to understand on the topic of recent Japanese economic history. Thank you.

@kamilsonsalla2491 2 жыл бұрын

thanks man for great video, I got a lot of answers I was looking for in very convenient format

@Nonamearisto 2 жыл бұрын

Keep in mind that Japan's "fall" was from 2nd to 3rd place, and even if they fell to 4th or 5th, they'd still be a highly-developed, rich economy with high living standards and a high GDP per capita. It's just that they used to be growing rapidly, and now they're mostly stuck where they are in absolute terms, while falling behind the growth of other countries, which puts their relative position at risk.

@hectorr4956 2 жыл бұрын

china ,usa , even russia has more money, japan is too small and dont really like anybody esle , soo they lose

@Nonamearisto 2 жыл бұрын

@@hectorr4956 Russia doesn't have as much money as Japan.

@hectorr4956 2 жыл бұрын

@@Nonamearisto russia could wipe japan off the map in 3 hours what are you talking about

@Nonamearisto 2 жыл бұрын

@@hectorr4956 Russia has nuclear weapons, but that doesn't mean it's rich.

@Edinburghdreams 2 жыл бұрын

@@hectorr4956 Russia rank 11th in the world based on GDP compared to 3rd place Japan. Difference in figures: Japan 5.06 trillion, Russia, 1.48 trillion. Japan's economy is more than three times the size of Russia's!

@toyoashihara6242 2 жыл бұрын

Good job!! As a Japanese citizen, I thought that your views are quite comprehensive and well-balanced. I think this is a very good introduction to what happened to the Japanese economy during the last 4 decades, especially the last 3 decades of stagnation.

@MoneyMacro 2 жыл бұрын

Thanks!! Very happy to hear that.

@stephenbaker7079 Жыл бұрын

A very generous response.

@NeostormXLMAX Жыл бұрын

@@MoneyMacroyou left out usa intervention

@user-fn8in9lo4h Жыл бұрын

china number one🇨🇳，you are chinese，not japan，japan is part of china

@kingclover1395 2 жыл бұрын

I remember when I was a kid in the '80s and there was such American interest in Japan. Of course there was all the talk about Japan crushing our economy or whatever with all their Sony Walkmans and Japanese cars, But I also remember how eveyone loved Japanese products and Nintendo and movies about Japan and just everything Japanese. And I had all these T-shirts and clothes and toys with the Japanese flag and Japanese writing on it. And it was all the rage. Everywhere you looked you saw something with that big red ball on it with Japanese writing under it.

@anonymous.youtuber 2 жыл бұрын

Outstanding report , very well explained also. I’m subscribed ! 👍

@roro-mm7cc 2 жыл бұрын

There is an award winning documentary about this called “princes of the yen”

@MoneyMacro 2 жыл бұрын

It's one of my sources (the book that is) :)

@Shadowsuit 2 жыл бұрын

The book is really great and explain far more the mechanism underlying the took over

@roro-mm7cc 2 жыл бұрын

@@MoneyMacro Yeh - just suggested the documentary as most people probably won’t have the time to read the whole book and the documentary is here on KZfaq. It’s a good overview.

@sayeretjoez9297 2 жыл бұрын

kzfaq.info/get/bejne/a5N5jb2p3siVd30.html

@IchimokuCloud 2 жыл бұрын

The documentary is so good.

@Oldschool747 3 жыл бұрын

The algorithm has lead me here, this channel is gonna get big soon

@svenwesterbeek1615 3 жыл бұрын

same here

@colhammer1 3 жыл бұрын

Hail to the algorithm.

@enzoh7763 2 жыл бұрын

Same with me here , algorithms is a God sent, this time.. Good topic ,great content, I learn a lot .

@raymondchow8722 2 жыл бұрын

But not Japan

@Informalities 2 жыл бұрын

Same bro. Economics explained is gonna have a homie!

@tottibrotta4247 Жыл бұрын

Such a great video! Super helpful and easy to follow! 🙏👏

@marco_admin Жыл бұрын

Inbox me 👆 Immediately you got this text

@alexanderstefanov6474 2 жыл бұрын

I was in Japan in 2019, it looked decades ahead of the US and most of Europe. There might be structural economic issues but the country has one of the best infrastructures in the world and it's an amazing place

@PierSilver 2 жыл бұрын

What it looks like and what it is like are two very different things, though. The infrastructure is there because the population density allows it, imho (not only that, but it's a prerequisite). That's why the Netherlands have good infrastructure too. Let's talk about working hours, social mobility, ease to open small businesses. I'm not saying Japan is bas, but it's not decades ahead, imho.

@e.h.8936 2 жыл бұрын

problem is that Japan was like a good century ahead of Europe and US back in the 70s, so being a head for only a few decades ahead of the west is not a compliment at this point in time for Japan. Just because the west got continually more fucked doesn’t mean Japanese people are satisfied with their own progress. Japanese people strive to be the best and for its own sake, look at their manufacturing and engineering, American and European cars can only dream of being ok the same quality of Japanese cars.

@05tsamra 2 жыл бұрын

the real reason is the plaza accord

@devinmes1868 7 ай бұрын

East Asian countries tend to greatly value appearances (for many cultural reasons that relate to their collectivist roots). Upon further scrutiny, you may find that Japan isn't as advanced as it initially appears.

@stevendunn2501 2 жыл бұрын

I've been living in Japan for 12 years. And the economic health of the average Japanese worker has gotten worse. Poverty in Japan is a growing problem that no one talks about.

@2001lextalionis 2 жыл бұрын

yup, its not getting any better either. its especially hard for children and single mothers

@yuvalgabay1023 2 жыл бұрын

@@2001lextalionis this is a big reason why they population stagnest. People can beraly support them self, and people are way over work and over presherd+ the super haircael biasness in Japan makes it even worst. The funny thing that most japanese"incels" are just people whit small company's/independent workers. Who the hole society looks down off

@yuvalgabay1023 2 жыл бұрын

@@xXDESTINYMBXx fuck I hate Taiping on the phone

@yuvalgabay1023 2 жыл бұрын

@@xXDESTINYMBXx + we can also seeing it in thier porn . The more kinky and deprive the porn get you know more and more people are getting edicting to this.(I'm not against porn but we can see the reasons why exesive porn usage are coming from and what it's causing). In Japan this case is really bad whan alot of thier porn is really fucked upp

@xXDESTINYMBXx 2 жыл бұрын

@@yuvalgabay1023 I just say ntr to this

@IchimokuCloud 2 жыл бұрын

It wasn’t the Kyoto Palace = California. It was the Tokyo Chiyoda Palace.

@Gnefitisis 2 жыл бұрын

Still... fucking crazy

@MoneyMacro 2 жыл бұрын

Yeah someone else noticed as well. My bad. I stand corrected

@Sean-ll5cm 2 жыл бұрын

@@Gnefitisis Apparently the Australian government sold their Tokyo embassy for over AU$600 million dollars during that time and it helped pay off the national debt

@Gnefitisis 2 жыл бұрын

@@Sean-ll5cm lol genius

@goncaloveiga 2 жыл бұрын

Great video and research!

@AnimeUproar 2 жыл бұрын

Great video! I really appreciated all the Anime references as well.

@haera1471 2 жыл бұрын

omg animac!

@c8Lorraine1 2 жыл бұрын

I lived in Japan and one thing I noticed, corporations were expected to over employ people to soak up the numbers of unemployed in society. Young people are paid less money because it’s expected they still live at home with parents. Girls were expected to marry and fall out of the employment market.

@beezelsub Жыл бұрын

Not Western. But practical ideas.

@beezelsub Жыл бұрын

Do the young there still marry?

@nomobobby Жыл бұрын

@@beezelsub Imfamously, not since the 90's. The rates of marriage and childbirth remain terribly low no matter what has been tried.

@qewiu830 Жыл бұрын

@@nomobobby Have they tried not overworking their population?

@Adhjie 10 ай бұрын

@@qewiu830karoushi....the progressive one is in eg Paolo interview

@ToushikaCuber 2 жыл бұрын

<a href="#" class="seekto" data-time="1785">29:45</a> "When something isn't working, the answer is rarely 'well, let's just do more of it'". Welcome to Japan, where people plan something once, try it, and if it doesn't work, just continue doing it, because it is supposed to work a day or another. Japanese people just hate admitting they were wrong. It is a matter of dignity, even if that is completely counter-productive. PS : I live and work in Japan.

@Meonium 2 жыл бұрын

Sounds just like me lol

@matttube9369 2 жыл бұрын

Unfortunately its true.

@Lexman00 2 жыл бұрын

Huh? Sounds more like the USA. Over here people won't have any type of criticism, and the people that make bad choices in life are not held to take responsibility for them, they are instead subsidized. At least in Japan people are very by the book, and more importantly, they believe in personal responsibility and pulling your own weight in this world.

@lornespry 2 жыл бұрын

I mostly agree with your comment, although I don't know how much it has to do with "dignity". I've read quite a bit about Japan's 'Pacific War' - WWII - much it written by Japanese historians (in translation). The same thing applied. The brass hats in the halls of power would devise a plan. If it worked once, they'd keep repeating the same strategy over and over despite the most tragic results. (BTW: I live and work in Japan too.)

@linming5610 2 жыл бұрын

It's more on because it worked in the past. Look at their high quality products and services back then. But now, the standards are rising but they are not. They stagnated because they became too comfortable with their past glory.

@Vasudevpandey01 Жыл бұрын

Excellent video! Exactly what I was looking for

@boldbaatardashdorj9389 Жыл бұрын

Very nice made content with full of valuable logical and factual informations. Thanks man!

@daddyscience 3 жыл бұрын

Great neutral read of Japan's economy over the past 40 years.

@MoneyMacro 3 жыл бұрын

Thanks!

@ErikPT Жыл бұрын

I agree Erik

@noco-pf3vj 2 жыл бұрын

Japan: trying to boost up inflation for decades and failed. Other countries: Oh no, inflation out of control!

@freeeggs3811 2 жыл бұрын

That is because of the US.

@Arquiteto-em-Sao-Paulo 2 жыл бұрын

other countries: lets do that again and try not to have more kids.... Japan: buy things is happiness.

@Rusu421 2 жыл бұрын

@Federal Bureau of Investigation printer go brrrrr...

@JojohnWick 2 жыл бұрын

That is because government intervention. If government let market falls to bottom, surely the slow growth will create inflation. They intervene instead create a very very slow drop, so it deflated slowly. USA stock market also the same by now. They don't let it fall and corrected, they will have abnormal economy ahead.

@drscopeify 2 жыл бұрын

I think that is because Japanese people are very frugal and they don't buy and hoard items like people in other countries do. People in Japan tend to live in apartments and just don't spend much money. Even in China there is much more spending but there is a hard limitation as most people also live in small apartments although larger than Japan still nothing comapred to American private homes and culture that is just a massive spending machine. There is a reason how USA built modern China from it's crazy consumption of goods as prices rise in China new countries or old ones can take that market share away form China which is why growth has slowed to a crawl in China and they are making radical changes this year. They know that the American and western consumption machine is leaving China so they are making that transition move faster.

@popocucu7749 2 жыл бұрын

Glad I have found your channel. Very informative! Good job

@monsieurcharlus7248 2 жыл бұрын

Woaw, great job of research. Hats off!

@Ironborn4 3 жыл бұрын

What I've noticed in terms of japanese people having babies is that the sheer lack of both facilities and time make it very difficult for young people to have babies. Regardless of daycares built by Abe, finding a daycare is an absolute waiting list hell and incredibly expensive. When looking at it a step back, I see that people are unable to properly date in Japan (Tokyo at least). Most professionals I know work at least 11 hours a day and some change on the Saturday. People are simply too exhausted and stressed to find time for relationships, let alone babies. Maternity leave is actually pretty good but it really depends on the company. Japanese corporations and politics keep holding on to the 80's notion of working yourself into a stupor and it is very difficult to change this culture. It's not that abnormal to find japanese young professionals who haven't dated anyone since graduating college because they are so damn swamped

@MoneyMacro 3 жыл бұрын

Very interesting. This is something that I think you start seeing more and more in many big cities. I think it shows that policy makers need to consider multiple factors if they want to influence birth rates and that these factors can be quite different depending on the country.

@Ironborn4 3 жыл бұрын

@@MoneyMacro on the other hand, from what I understand Scandinavian countries have abundant facilities and amazing parental leave and work life balance. However, their birth rates haven't gone up either.

@robertjonker8131 3 жыл бұрын

@@Ironborn4 sweden and denmark actually do have a pretty decent birth rate and they will have population growth. Way better than the western average atleast

@Ironborn4 3 жыл бұрын

@@robertjonker8131 learn something new everyday. I always thought the Scandinavian countries were doing very poorly in terms of birth rates

@amanofnoreputation2164 2 жыл бұрын

"Ah finally I can go home..." * phone call from boss * : "HEy nIKo lET's gO dRInKinG!"

@dennywang8688 Ай бұрын

Good content. Thanks mate 🎉

@yw1182 2 жыл бұрын

Thank you for all your videos they are all gold!

@kumarsitaraman5009 2 жыл бұрын

Good presentation! Walking through decades of Japan’s economy was a help, knew parts of it like Abenomics, but a wholistic picture in this presentation is what we need! Please keep up the good work, thanks!

@rachelar 2 жыл бұрын

Abenomics is just spin and for the elite to get their hands on the final crumbs. No trickle down

@Yutaro-Yoshii 2 жыл бұрын

I'm seeing more and more migrant workers working at shops and convenience stores since Abenomics has started. Your analysis is spot on! Also it's true that there is save and reserve attitude among the youth. Especially because of the prospect that the government pension program might someday fail and we have to support ourselves on our savings. Even if it doesn't fail, we will still be paying more for the program than what we will get in the end since the money goes directly to the more populous baby boomer generation which is currently being served.

@ayoCC 2 жыл бұрын

It's a complex problem, Germany (where i am from) has easy access to workers who migrate over the land with trains, and can even out the thinning populating with policy on how many people we import. So population is growing, but birthrate is very bad. Japan is locked into an island. But as long as a country can create all goods and services a person needs, it's good to live in that country, and that's true wealth isn't it.

@wamnicho 2 жыл бұрын

@@ayoCC Looks like Feminism is killing all the so called rich countries with their fake economies, eventually you will start seeing social chaos and eventual civil wars in these countries especially the ones with massive non-white immigration

@ayoCC 2 жыл бұрын

@@wamnicho Countries can't die with strong systems and infrastructure. In rich countries most people live quiet lives, but 90% are happily enjoying hobbies or passions. I'm not sure why you think those things are destroying the countries.

@wamnicho 2 жыл бұрын

@@ayoCC countries are made up of people, infrastructure is secondary, without people, the infrastructure can't survive. What's the point of having nice infrastructure when everyone is over 70 years old

@sergejpomelov2046 2 жыл бұрын

@@wamnicho Actually, it is pretty much the other way round. In Europe, the highest fertility rates are in most "feminist" countries, where governments provide enough services like preschools, so that women could get back to work as soon as possible instead of staying home with children. The lowest fertility rates are in fact in more conservative/traditional/catholic countries like Italy or Poland.

@deadby15 Жыл бұрын

The strange thing is, Japan hasn’t been doing great,but it hasn’t been doing terribly, either. No wage increase, but no price hike, either. Very low unemployment rate (less than 3%). The crime rate has been getting lower during the “lost” decades actually. I personally think slowly shifting from the obsession with economic growth to sustainable, non-wasteful lifestyle is a desirable thing, so I don’t think it’s all negative to lose some excessive steam.

@freespeechisneverwrong9351 Жыл бұрын

We need to tell all the economists around the world this. Growth is not always required.

@richard35791 Жыл бұрын

You must e kidding, while daily needs still keep higher despite deflation, there almost no middle class in kapan now

@professionalretard4293 Жыл бұрын

B-but numbers go vroom

@meganlukes6679 Жыл бұрын

Unemployment in Japan is extremely different than in other countries. Look up the lost generation and the hikikomori problem. The crash in birth rates reflects the malaise, and the situation is just going to get harder as the population aging accelerates and the worker:dependent ratio worsens.

@mirvio9741 Жыл бұрын

Have you talked to the real people living in japan? Not the rich ones but those who are struggling. Ther are so miserable

@erniec5465 2 жыл бұрын

I enjoyed your video and finally understanding a bit move. I was sent to Japan in the late 80’s to do some work and training. I saw a booming economy and imagined what it would be like to emigrated; a missed opportunity. Years later what happened? why Japan economy was not getting , now i have a good idea. I still have that 1000 yen note at that time it was like buying a $10 CDN cup of coffee (not the can coffee from the vending machines) . That coffee tasted great.

@Real_Iron_Smith 2 жыл бұрын

This was very well structured and extremely informative. I'm fascinated by Japan's Economy and Corporate structure, and only grew more fascinated when I visited the nation.

@byoshizaki1025 2 жыл бұрын

Yep and Japan has one of the lowest crime rates and healthiest populations in the world. Compare that to the U.S. where places like Chicago with 4000 shootings a year and Detroit that are as dangerous and dirty as countries like Iraq and Afghanistan. Not to mention the bridge in Pittsburgh that just collapsed yesterday due to a dilapidated national infrastructure. Have you seen the videos of the miles of packages strewn across L.A. railways from criminals doing whatever they want without consequences? How about the 200 shootings recorded along SF highways last year? Don't even get me started on the million people that have died from COVID and a healthcare system that is 2x more expensive per capita than Japan's but still produces some of the worst health outcomes of any industrialized country. The U.S. has become a real paradise.

@PiroKUSS Жыл бұрын

@@byoshizaki1025 Yet they have some of the most ideologically retrograde people around and don't innovate anymore, not to mention sexual crime is severely underreported. Yep.

@The_fusion_physics_guy 2 жыл бұрын

This was a very interesting video, and I will say that my favorite phrase from it was "that is not my area of expertise" when discussing population growth. Way to be honest about your capability to comment, you're a rare creature here on this platform. respect.

@alihatami6168 Жыл бұрын

Again thanks for ur videos ive seen this one multiple times to understand it fully. Ty a lot and i hope u keep makeing this kind of videos ❤️

@jobkroon6712 2 жыл бұрын

Great video again!

@willobe7702 3 жыл бұрын

Glad to find this channel. You did great in this case study explanation, it helped me alot considering my non-economics background.

@MoneyMacro 3 жыл бұрын

It's always a balancing act for me to go deep but to remain accessible. So, I'm delighted to hear this William!!.

2 жыл бұрын

I've been surprised about how the meaning of the word "Entrepreneurship" is relatively unknown by the japanese population. Young people there are too afraid of raising their own business.

@iannordin5250 2 жыл бұрын

It doesn't help that Japanese business (and on that note business in East Asia as a whole) is deeply rooted in a smothering corporate-aristocracy mindset. You don't have this idea of disruption or start-up culture, instead you have an entrenched ideal of the company as an institution that everyone in society is supposed to work for because these large companies provide for society. This all started with the Zaibatsu - a conglomeration of nationally sanctioned companies owned by a few privileged families at the start of the Meiji period. After their (on paper) dissolution following the defeat of the Empire, they fractured into many smaller, though no less entrenched Keiretsu, which are large companies that operate more like great webs of subsidiaries rather than the out and out monopolies of the Zaibatsu. This web of generational influence, red tape, and outright corruption make starting robust businesses from scratch very difficult in Japan.

2 жыл бұрын

@@iannordin5250 That explains clearly the stagnation of the japanese economy, since those Keiretsu companies have been favored by generous credits granted by the Window Guidance police from the Bank of Japan. Independent business cannot compete in that environment dominated by big corporations.

@talisikid1618 2 жыл бұрын

@@iannordin5250 how is that different from the fascist system in the West? And capitalism is fascist in nature. It is a system run of, for, & by the monied elites. It is not synonymous with market system. Big business stymies competition & usurps innovation for their benefit. Just look at how small business was shut down but corporations weren’t during the pandemic. Or how hard it is for competitors to break into social media.

@phuturephunk 2 жыл бұрын

@@talisikid1618 In a lot of ways there isn't much difference except for a couple of structural and cultural aspects. Structurally, our mentality here is 'well, some huge honking conglomerate or corporate titan is going to run the show.' It doesn't necessarily need to be some sort of 'traditional' legacy operation, just that some behemoth exists. This contrasts with the 'tradition' aspects of Japanese culture where they have specific keiretsu that will be propped up as zombie operations, something that has plagued the history of Japan over the last few decades. We don't really do zombies in the US outside of specific areas that we consider strategically valuable to the entire nation. Japanese business and central banking have literally propped up companies that should die. That literally have no reason to exist, strategic or otherwise...but they do provide jobs. On your second point, innovation is hard and the technical expertise needed to engage in any market only goes up with time. You can't really expect this high minded ideal of 'competition' when you're talking about things like chip etching, pharmaceuticals, datacom or even more 'traditional' industrial activities that have existed forever like opening up a metallurgy operation. Both require billions in capital to even get off the ground. This is going to continue as things go on and get even more strained. The days of actually breaking an entire new industry segment on a wish and a prayer are somewhat over. Things were simpler back then when this was true. This also brings up the canard that small businesses are somehow 'the backbone' of the American economy. They are not. They never have been. The prime movers in the economy are the largest industrial and commercial concerns that we have. They generate the initial impulse that then causes movement in everything that's connected to it. Saying that small business is the prime mover is like saying the starter motor of your car is the thing that actually propels it down the road.

2 жыл бұрын

@@talisikid1618 Indeed, USA is following the same recipe from Japan towards a Fascist System where only big corporations succeed with the favor of the goverment. QE and market manipulation are the norm in Wallstreet right now. Corporations are already killing innovation with patents and biased regulations in favor of them. That's why we need to learn the lessons from Japan, because they've experienced the blueprint of the scheme that will be realized to the rest of the world.

@Staul_ Жыл бұрын

I literally watched this last night and thought Abe would do great things. Woke up this morning and he’s been assassinated.

@starman4840 Жыл бұрын

It’s a dark world. That’s why we need to cherish these people more when they’re here

@sydneyshinshi 4 ай бұрын

Yes that was sad.

@JohannBBravo Жыл бұрын

i rate this video 5/5! should be a quality indicator for stuff like that! i truly appreciate your work! this is a very insightful intelligent overview over japanese economy and almost easy to understand! keep it up! i saw some videos from you but now its time to subscribe :D

@jonalvarez2460 2 жыл бұрын

Thank you for the video. I currently live in Japan. My knowledge on economics is very limited. However, there are two things I would like to ask/share. One, from my work experience here, I learned that it is quite usual for a Japanese company to have very little operational income year after year. Labour and provider costs typically eat up all the money they made. Labour costs are very high not mainly because of wages, but because of welfare. Japan has this system called welfare society instead of welfare state, in which companies and households are the main safety net, not the state itself. Second, (and about this I would like to ask for your opinion), there is the retirement pension policy. Government consistently states that pension system will not disappear but this will happen by severe cuts on pension amounts. This is often felt by most people as the main reason to save money instead of using it: they consider that they have to save enough in order not to be poor at the age of retirement. But I do not know whether there is a causal relation between pension policy and household savings, and I would like to hear your opinion on that. There are also other reasons to save money, such as healthcare. National healthcare insurance covers 70% of costs, but the patient must pay the other 30%. Which can be a lot of money in case of a serious disease.

@user-vv9ky3jm4h 3 жыл бұрын

私は日本の高校生です。非常にわかりやすかったです。ありがとうございました。

@MoneyMacro 3 жыл бұрын

Great to hear that! You are welcome.

@davidbagley1783 2 жыл бұрын

Sansei

@ejrupp9555 2 жыл бұрын

Well that's refreshing ... kodomodachi with an interest in the future and past. It had to be the dragon ball z part .... just kidding. Stay on top of things kiddo.

@christopherpetrov2355 2 жыл бұрын

Very well explained !!

@borgejohnsen 2 жыл бұрын

Great video! 🤗

@tomguion5201 3 жыл бұрын

Hey Lad ! That was really nice ! Keep up the good work !

@MoneyMacro 3 жыл бұрын

Thanks!! Will do.

@Feinei 2 жыл бұрын

I've been interested in economics for a long time and this video strangely worked to connect a lot of dots for me in what I already knew but didn't understand. Great video

@MoneyMacro 2 жыл бұрын

Thank you! I'm very glad to hear that.

@XxpitbulxX009 2 жыл бұрын

The editing that goes into this 👌🏾

@luisvasquez812 2 жыл бұрын

Thanks for this amazing research !

@gregvanpaassen 2 жыл бұрын

Absolutely awesome description of Japan's recent economic history! You have a real knack for creating a clear plausible narrative out of a mass of information! Through an orthodox macroeconomic lens, of course. :-) I am in the demography camp: a lot of the things that happened (property bubble, disinvestment, deflation, etc) are explicable as products of the demographic life cycle, with a very big "baby boom" cohort. Japan's "baby boom" peaked around 1950-53, about 10 years earlier than the USA's. It was much more compressed than the Netherlands' (spread out over 1950 - 1970-ish). (Interestingly, Italy, the demographic "Japan of Europe", didn't really have much of a baby boom. Just the bust.) I think that you blur matters a little by using overall population rather than working age population. The "working age" population is also the house-buying, car-buying, and child-goods-and-services spending age population: it is the "economically relevant" population. (Using total population does make for a more linear narrative, of course.) (If cohort size is stable, the difference between working-age and total population would not matter much, but the fact that it was not is to me the reason why we had a property price bubble in Japan and why we are having a property price bubble in much of Europe, North America, and Australia-NZ, starting 15 years ago.) The cause of the property bubble, to me, is the efforts of Japan's "baby boomers" to save for their old age during their peak income years, 40-55. Similarly, the high savings of Japanese companies is a direct result of the decline of Japan's working age (really, "spending age") population. Once that population starts to decline, there is little reason for companies or local governments to invest. As you say, the government could counteract the lack of consumption and investment by increasing transfers to the people who are most likely to circulate them, but it has not done so. No country has yet tried a policy that increases fertility sustainably. I don't think anyone has any idea how.

@MoneyMacro 2 жыл бұрын

Thanks! Good point about working and population!! Don't agree about the saving point. This assumes that the money/ credit supply is a physical 'thing' that has to either be saved or consumed. It is not. Check out some of my videos on credit/ money creation of this difference interests you.

@gregvanpaassen 2 жыл бұрын

@@MoneyMacro Thanks for replying to a very late comment on an old (in Internet Years) video! Also thank you for understanding my point about working age population (WAP) being the economically significant one. I think you did make the point in the video that Japan's "GDP/WAP" growth has been average. Stable or growing WAP has been an implicit background assumption for commerce (ignored in economic and investment theory?) throughout the 20th century. I think that WAP effects are going to become more visible over the course of the next 20 - 40 years, as more of the developed world transitions to static or declining WAPs, the exceptions being economies that integrate large enough numbers of skilled LDC immigrants. For example, the UN World Population Prospects 2019 projects -0,65% per year for Germany's 15-64 WAP for 2020-2040 (population.un.org/wpp/Graphs/Probabilistic/POP/15-64/276). Others in the current top 10 countries by nominal GDP: China, -0,7%, Japan, -0,88%, Italy, -0,9%, Korea, -1,1%. (The US, France, Canada, India, and maybe the UK will carry on as before.) I think these changes are more important than just giving Brazil and Australia a chance to move into the top 10, and reducing global GDP from its trend over the last 20 years. The reason: second order effects might be important. For example, company investment decisions. Investment when the potential market for your products will double in 35 years (2% WAP growth, the "normal") has different risks compared to when the market will halve in 70 years (-1% growth). In turn, there might be third-order effects redirecting firms to specific activities, with effects on productivity and growth. However, I don't know what would be the best analytical toolset to determine whether these downstream effects are as important as I believe. Heterogeneous agent based modelling? :-) You are right to challenge my savings points. They are weak. I will watch your videos--my understanding of money supply is on the level of "banks create money by making loans; the quantity is supply-limited to loans that the banks believe will not fail".

@dianapennepacker6854 10 ай бұрын

If you're not going to have immigrants. Pay people to have families! People always say it is a full time job so make it so. Obviously it won't just be free money as there will be regulations and such or else that would create broken people.

@utsavbarman 2 жыл бұрын

I searched for Lost Decade and reached here. No Regrets. Awesome use of my 36 minutes. Loved the way you presented different concepts. I would love to see videos where you extrapolate current economic situations.

@MoneyMacro 2 жыл бұрын

Thanks!! I am considering making this semi longer format into a series for multiple economies. E.g. EU and China and then discuss several theories when they are relevant. Also, some inflation videos are in the pipeline.

@tonydevos 2 жыл бұрын

Very very VERY informative. Thank you

@peteg400 11 ай бұрын

Excellent article! Thank you.

@cmbosah 3 жыл бұрын

Superb explanation. My goodness. You are brilliant. Please keep the videos coming and also consider writing several books on various economic topic. You are brilliant. You managed to boil down very complex concepts into simple forms.

@MoneyMacro 3 жыл бұрын

Haha wow thanks!! I'll keep making videos like this. One on Lebanon's currency crisis is coming up real soon! Took me a bit longer than expected since it is once again a super complex subject.

@05tsamra 2 жыл бұрын

the real reason is the plaza accord, which destroyed japans economy

2 жыл бұрын

Something that may help, modernize the goddamn banking system, there is no reason why you need to go through all these hoops to do basic banking tasks like getting a debit card that doesn't allow cash withdrawals and depending on cash cards that their only use is to withdraw cards with fees on ATMs

@hoagie911 9 ай бұрын

Amazing video, thank you

@MoneyMacro 9 ай бұрын

My pleasure!

@lutfirokhman8429 2 жыл бұрын

wow this is one of the most understanding explanation history, thanks for not being rush

@PerryKobalt 3 жыл бұрын

Amazing I got this in recommend Plus you did mention Plaza Accord and I'm surprised because none of KZfaqrs explain it or they just flat out didn't know.

@MoneyMacro 3 жыл бұрын

Thanks!! I'm surprised they didn't mention it at all. Some of the articles I came across gave it too much credit (in my opinion) but to not mention it at all is on the other extreme end of the spectrum.

@PerryKobalt 3 жыл бұрын

@@MoneyMacro Plus your are Top Notch, thank God Algorithms has blessed me here too, in the end your videos are much more researched than any other KZfaqr economics. I applaud your genuine Quality over quantity man and keep pushing for 1K to 500k subs man !

@tomasbickel58 3 жыл бұрын

@@MoneyMacro , thanks for this work. I watched that "Prices of Yen" vid a few years ago. At that time something struck me like conspiracy theory. I came across the Plaza Accord in an other video these days, which I had no knowledge of. So I rewatched the "Princes", and yes it's missing, in favor of a vague "interest group" narrative. I seems to me, that the compliance to the Plaza Accord hit Japan especially hard since their society was .. let's say "conservative". The German society wasn't hit that hard at all, though also targeted by the accord.

@backpackpepelon3867 2 жыл бұрын

Most let it slide because they fear the political fallout from it. If that deal are made between another superpower, you will see its mentioned all the time.

@kitnascimento0 2 жыл бұрын

He doesn´t mention the factor that explains 90% of what happened. Everything cascade from there also doesn´t mention the fact that japan is a ocupied country that cannot make its own policies when it colides of those of the "big master" leading to some ridiculous episodes like joining the anti-china "quad" or saying they will "fight china" over taiwan. Politics and economics don´t live in separated universs they intertwined. Also could mention that they have no natural resources to speak off and are totaly dependent on the import of energy and raw materials wich means even if japan was not ocupied they would have a hard time resisting the "big master" dirty tricks like the plaza acord

@atirix9459 3 жыл бұрын

Nice video! I don’t agree with most of your analysis, but I appreciate how thorough and informative the presentation is.

@MoneyMacro 3 жыл бұрын

I appreciate that Atirix. I am not an arbiter of truth so disagreement is certainly possible. Great that you found it informative nonetheless!

@LucasdeFarias 2 жыл бұрын

Amazing content. A free master class.

@tompike7239 Жыл бұрын

Great video, thank you!

@marco_admin Жыл бұрын

Inbox me 👆 Immediately you got this text

@blogger365 2 жыл бұрын

Very intellectual discussion but relatable at the same time. Thank you for this highly informative video.

@MoneyMacro 2 жыл бұрын

My pleasure!

@Illuminatorofshadow 2 жыл бұрын

Japan is one of the least trade-dependent economies in the world, only the US has less trade as % of GDP among major economies (but that's because the US economy is so vast that much of the activity becomes "internal"). In that sense, they are the complete opposite of Germany. Japan is also not as financially integrated as Western economies and were not that directly exposed to the subprime crisis, making it even harder to explain why they were one of the hardest hit economies in 2008-09.

@Illuminatorofshadow 2 жыл бұрын

@@chunchunmaru07 Check World Bank figures. Less than 18% of Japan's GDP is exports, compared to 44% in Germany. OECD average is 29%. Among major economies only US is less exports dependent than Japan, which is expected of a continent-sized economy. Therefore, one would expect Japan to be less exposed to external shocks, yet they were one of the hardest hit economies in 2008-09.

@AAONMS1 2 жыл бұрын

This is completey false! Looking at % of GDP is a misleading statistic. Japan is #4 in the world in total exports and #5 in total imports as of 2019. And the total size of their country is small! They are completely dependant on outside trade. Japan has very little natural resources of their own and has to import tons of raw materials and goods and food due to this fact. I have been to Japan. The cost of everything there is super high mostly due to having to import almost everything! Japan is known for building electronics and cars which are huge exports for them but guess what? They have to import almost everything to make them!

@Illuminatorofshadow 2 жыл бұрын

@@AAONMS1 Looking at export ranking is what's misleading. Japan might be #4 but they are just barely edging ahead of UK and France, much smaller economies, and far behind #3 Germany, which has a smaller economy than Japan but exports more than twice what they do. If Japan further loses in export competitiveness, they could quickly drop to #6 in exports, a very poor showing for the No. 3 economy. Cost of living is not higher than other developed economies. Exception would be food products, due to high import tariffs. Japan does rely a lot on imports of primary products, but those are very low value stuff. OECD data shows that only 11% of Japanese exports depended on imported inputs, much lower than Germany at 20% and France at 22%. So their already limited export sector is much less dependent on imports to produce their products, compared to other major countries. In other words, the Japanese export sector participates less in global supply chains than would be expected. I.e. not very trade-dependent. The reality is Japan's economy is much more insular compared to other major countries except the US.

@xXDESTINYMBXx 2 жыл бұрын

Japan had their own subprime crisis

@sawuelreyes 2 жыл бұрын

@@Illuminatorofshadow well... GDP is a fallacy.. or you are telling me that the average Japanese lives better than the average french/British? the majority of people in Japan are not rich...they can barely afford to live. Almost all the GDP is in hands of the super-rich.

@polarisjustdothework2258 2 жыл бұрын

You make good sense!!

@edt11x 2 жыл бұрын

Really good understandable explanation.

@JessicaHicks 2 жыл бұрын

Very insightful video. I'd love to visit Japan one day. I've been very interested to understand Japan's economy more, especially regarding stagflation. Thanks for the breakdown!

@wadebradley7388 2 жыл бұрын

You would love Japan. The food the sites the history the people. And did I mention the food!

@jason34242 2 жыл бұрын

I’ve been living in Japan for the past 11 years. You touched on all the key points. As others have mentioned, there are cultural differences and in particular conservative approaches to about everything for which also continue to hold Japan back behind other countries both in Asia and also globally.

@talisikid1618 2 жыл бұрын

Yet they have the best standard of living in Asia.

@onlyfacts4999 2 жыл бұрын

@@talisikid1618 Not really, South Korea and Singapore are ahead now.

@lzh4950 2 жыл бұрын

Think the people & companies became more conservative after being hit hard financially/traumatised by the property market collapse in the late-1980s

@hebedabber2770 2 жыл бұрын

Liberalism is a disease. It won't make Japan a better place to live.

@darkeroundhouse9408 2 жыл бұрын

@@onlyfacts4999 No. China is leading Asia now.

@olegkrasovsky4363 2 жыл бұрын

Wow! Thank you very for this! It’s the most comprehensive economic history of Japan that I’ve ever come across! We have business partners in Japan, I work very closely with them. Also visited Tokyo a couple of times. The fortunes of Japan are of a great interest to me.

@alihatami6168 Жыл бұрын

Great stuff ty a lot 🙏

@kamaujohn6303 3 жыл бұрын

Isn't that Richard Werner argument about how the Japanese economy lost steam through the central back policy?

@MoneyMacro 3 жыл бұрын

Partly, I definitely read his book. But, I think his argument is more that they did a lot of that on purpose.... to break the power of the state in favour of a wealthy view.

@jobsanchez9989 2 жыл бұрын

@@MoneyMacro so did the bankers intentionally bankrupted their bank so they can rip off the Japanese people? Like the S and L scandal?

@MoneyMacro 2 жыл бұрын

@@jobsanchez9989 I've never seen any convincing evidence that points to that.

@mattjonas5682 2 жыл бұрын

Plaza accords, this is what happens when you let another country control your money.

@pauloazuela8488 2 жыл бұрын

Well they lost the war. Although Japan isn't the same Japan before so I hope they get better. In the meantime US had a history f**king up our economy and they achieved it and now we're one of the poorest.

@chrisgunther109 2 жыл бұрын

@@pauloazuela8488 Our country being...?

@chrisgunther109 2 жыл бұрын

The alternative is more tariffs and the US inflating on their own. Same effect.

@QF756 2 жыл бұрын

@@chrisgunther109 Maybe Argentina

@moviesjean23 2 жыл бұрын

Great video 👍

@gcard2112 6 ай бұрын

Great video thank you

@jairusan 2 жыл бұрын

Really interesting information, I have been living in Japan since 2012, renting and with a full time job, I can say there is definitely no much innovation but small improvements and additions in technology, but as you may know, Japan is a very traditional society, birth rates has definitely decreased, I don't think they are having babies and the stagnation is noticeable, however, Macro-economy and Monetary policies are not something I understand much, hence the reason to check your video. Thank you again and I will definitely check some more of your work.

@howo357 2 жыл бұрын

Small improvements without major innovation was how Japan became a power house post WWII. Quality of their cars are fine examples. But this idea of taking others innovation and improves it little by little will ultimately be their down full as well. I work for a Toyota supplier. We know Toyota has just started investing in electrical vehicles R&D. Their quality will for sure be better than Tesla’s but they have lost the brand recognition and will have to buy their batteries to compete. Not to mention all autonomous driving software will need to be outsourced to US companies.

@jairusan 2 жыл бұрын

@@howo357 Absolutely agree with your response.

@lzh4950 2 жыл бұрын

@@howo357 Japan seems to be known more for incremental than radical innovation I think in some areas e.g. their cars adopted direct injection later than German ones, though also because they sell more cars in developing countries where the fuel is dirtier & would damage the more delicate components used by direct injection engines I think

@prasadseshadri9886 2 жыл бұрын

@@howo357 They WERE very innovative. They were the first in the world to recognize the value of semiconductors to achieve miniaturization of items like radios, tape recorders, TVs, toys etc. and also to develop innovative methods to achieve high quality in their manufacturing processes.

@howo357 2 жыл бұрын

@@prasadseshadri9886 semiconductor were discovered by German engineers. And all those things you mentioned weren’t invented by Japan. They improved and made them more accessible. But yes their innovation lies in manufacturing process to achieve higher productivity and quality.

@sayansahay5424 3 жыл бұрын

I have binge-watched your entire channel. Love your content

@MoneyMacro 3 жыл бұрын

Thanks Sayan, love to hear it.

@orpezo 8 ай бұрын

I LOVEEE YOUUU. I had to do this presentation for Individual Societies (IS) on Japan's Abenomics and why they needed it and how the abenomics played out. I did countless research but my head was spinning instead. This neat and well explained video helped me a lot!!! Thank you soooo much!!

@MoneyMacro 8 ай бұрын

My pleasure

@lydon9394 2 жыл бұрын

cool video, just taught this topic to my students

@peteroneill2991 2 жыл бұрын

Just subscribed another excellent video to go with your rebuttal of EE, now going to watch Dutch via USA to hopefully get ammo against the future Great (not) UK/US trade deal.

@nz6241 2 жыл бұрын

The timing is perfect, I can go back to Japan from US with fraction of my wealth here in US, and live an amazingly comfortable life.

@kurrupoppo6937 2 жыл бұрын

Depends where you are coming from in the US and going to in Japan, same goes for here in Canada. I live in Vancouver, and for what I pay here for an apartment is an insane amount in say Tokyo. Close to double the price in Tokyo then here in Vancouver and in Tokyo much smaller apartments as well then compared to here in Vancouver. I almost moved to Japan myself as I dated a women there for 7 years, but compared to here it is just to expensive in somewhere like Tokyo.

@phylosophersstoned43 2 жыл бұрын

awesome video!

@MoneyMacro Жыл бұрын

Thank you!!

@colinubeh1180 Жыл бұрын

Nice video. This is better than reading dry technical publications.

@disapremium3257 3 жыл бұрын

Loved the anime references in this great documentary

@MoneyMacro 3 жыл бұрын

My favourite from each respective decade :)

@whathell6t 2 жыл бұрын

@@MoneyMacro But no Tokusatsu references (except for one, Godzilla 1954). That's still a huge entertainment medium in Japan and gather recognition around the world.

@MoneyMacro 2 жыл бұрын

@@whathell6t I need to have a look at Tokusatsu then :)

@zongrenli3951 2 жыл бұрын

Great content, especially how unbiased you present the facts and look into the future. one more sub for you :)

@MoneyMacro 2 жыл бұрын

Thanks!! Very glad to have you as a subscriber.

@Summitclym 2 жыл бұрын

Very well done!

@MoneyMacro 2 жыл бұрын

Thank you very much!

@ElJorro Жыл бұрын

excellent analysis.

@marco_admin Жыл бұрын

Inbox me 👆 Immediately you got this text

@lukelim5094 2 жыл бұрын

I would say one of the few of the reason Japan grew stagnant is due to the fact it expanded and perfected its process and infrastructure too quickly too . It is simply too expensive and risky to tear down something old in the eye of Japanese. For example in Singapore where I live, the old carpark system is a mess while the carpark in the newer one is excellent. The old carpark is usually residing in old city area that have british influence. While the roads and carpark in the new estates is just excellent. Because it was newly build on newly developed lands. In Japan, there seem to be an unwillingness to tear down the old systems for a better system. Might be due to cost, might be due to an perfectionist culture, might be the fear of risk for a new system. For China, there was nothing no existing infrastructure or digital stuff at all. They can just put in the latest most efficient system without caring about the old system. In other words, it is simply easy to build something up from zero.

@roger_isaksson 2 жыл бұрын

In all fairness Singapore is a semi-chaotic hodgepodge of cultures and ideas compared with Japan’s somewhat homogenous (stale) society that reflects into its corporations.

@TheDa6781 2 жыл бұрын

"In other words, it is simply easy to build something up from zero." This is basically how the US came to be.

@PomegranateChocolate 2 жыл бұрын

@@roger_isaksson Singapore also have Indians. Yuk.

@kavenxiong5521 2 жыл бұрын

@@PomegranateChocolate No, you're yuk.

@chrisgunther109 2 жыл бұрын

Japan is super-conservative, so you can't go around offending all the old people who loved that old car park! China on the other hand will pave over your house while you're still inside and dare anyone to say something.

@burtonblume973 2 жыл бұрын

A very cogent summary of the last 40 years of Japanese economic history which correlates precisely with my own 42 year residence in the country.

@xiongchia1985 2 жыл бұрын

Thank you very much, Sir!!your survey is so interested for Macroeconomy & Monetary politics! Paris, Fr( 21/10/2021)

@kensonlama 19 күн бұрын

you used a LOT of beautiful B-Roll. thanks for all the effort put into production. There was literally a video of a bubble when you said "bubble economy", so tight.