JAPANESE ECONOMYThe lack of innovation due to the government supported mega-corporations and the raise in taxes worsen the falling Japanese economy from the 1990s. The nominal GDP growth rate was in negative numbers. Wages fell and today, adjusted for inflation, the average salary has been decreasing.
As the Japanese population ages, it becomes unable to sustain itself facing a demographic crisis. Japanese debt
Japan has amassed a huge debt. Reaching over 250% of its national GDP Ever since the 1990s deflation has been a major issue in Japanese economy. Japan currently has such a high level of debt that it’s doubtful the country can ever repay the full amount. The Japanese Government gets its money form taxes in order to spend it on public services and other commitments. If more money is wanted, the government issues debt securities to investors. However, Japan has to pay interest to the investors. To lower the burden of debt, Japan’s central bank reduces the interest rate and supplies more cash. This will make Japan fall into a debt trap, estimated that by 2040 interests will surpass tax income |
JAPANESE POLITICSJapan preserves the same constitutional monarchy. During the first decade of the 21st century japan saw its youngest Prime Minister since world war II, Shinzō Abe, who later resigned. Until 2009 Japan had a dominant party, the ‘Liberal Democratic Party’ (DPJ), despite the existence of other parties. Japan inclines to a more conservative government as Japanese heavily regard stability. The opposition party, social-democratic and liberal ‘Democratic Party’ (LPD) were in power for the first time in 50 years. As the inexperience and different outlook of the party a change, back to the DPI was imminent.
In 2012 the former Prime Minister Shinzō Abe was appointed Prime Minister as the LDP won absolute majority. Abe remained Prime Minister till this day. |
アベノミクス Abenomics
In 2013 Japan announced the National Security Council in order to assess Japan’s vulnerabilities. Referring to Prime minister Shinzo Abe’s three-way approach that combines fiscal expansion, monetary easing, and structural reform. As a result, the Yen (Japanese currency) became weaker, increasing import prices, however the stock market had risen and so did consumer spending |
Demographics
Aging population
As age expectancy increases Japanese fertility rates plummeted. Today more than 25% of the population are over 60 years old and the percentage is only growing. The labor force will keep reducing until it wont be able to support it aging population. |
Immigration
Japan's immigrant population only account to 2% of the total population and most immigrants are Chinese and Korean. Japan is know for its closed borders even as the working population is been steadily reduced. Fueled by cultural and racial discrimination Japan disregards Immigration as a solution. |
Family planing
Higher education, Urbanization and fewer marriages. Japanese families are being changes because of the higher cost of raising a child as well as the gender defined family role. The government regards family planing as a solution to the Japanese demographic crisis. |
Japan is very cosmopolitan – it values its origins, but a world view hovers above this narrow perspective. The interest of the Japanese in their folk culture is transcendental. – Jose F. Sionil |