JAPAN: Plaza Accord, Rising Debt & Japanese Economy

The Economy of JAPAN saw an average annual growth rate of nine percent between 1955 to 1973 which was an economic miracle, ESPECIALLY for a war-torn country. It saw ANOTHER 4 percent average annual growth from 1973 to 1990, and this total of three-decade economic prosperity made Japan a FINANCIAL POWERHOUSE!
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This era could be called a GOLDEN PERIOD in the history of Japan. The country was dominating multiple industries like automobiles, semiconductors, the entertainment industry, and the consumer electronics industry from cameras to video games, and from walkman to pocket radios. Companies in Japan were prospering, they were paying on a piece-work basis, and above all, people’s living standards were uplifted and their savings were on the rise.
Japan reached around 75% of the USA’s GDP at that time, which was ASTONISHING for a country HALF the population of the US and SMALLER than the state of California.
Japan’s growth rate was so REMARKABLE that it lead to optimistic predictions that sooner or later it will cross the economy of the United States to become THE biggest economy in the world. BUT, it didn’t happen!
The country instead faced an economic crisis that put the growth to a HALT! But what went wrong???
The video also discusses The Plaza Accord, The Lost Decade, Japan's population with highest aging population while at the same time a lowest birth rate making the population shrink. It also discusses Japan's automobile industry, Keiretsu, earthquakes, employment rate, Yen currency, Japan's rising debt, its GDP to Debt ratio etc.
#Japan #Japanese #economy
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[@leonleon2021]

Japan during the bubble era had very low interest; It was so easy for Japanese to borrow money; The money pumped into the society then used to invest in stock market and made stocks skyrocket. Wait, why the whole thing sounds like the bubble we are living through in the US??? 🤔

[@pascalguerin5238]

Same here in Canada. I am a total idiot with managed funds, and still got 20% interest rate last year from my investments. Meanwhile, real estate jumped around 30%. This... is definetly not sustainable!

[@pascalguerin5238]

ok I got a reason why we may not be screwed in north america : we have more immigration and births than in japan. However, where I live, we have an aging population and it is definetly a problem... also, what he talks about foreign investment in japan is pretty bad...

[@SvSGaming]

Well the argument is that the US currency and economy is strong enough to sustain money printing to a certain extent, and only if assets don’t continue to rise. I hope that argument is right...

[@haiquach4119]

Exactly the same we are right now in USA huhuhu😪🤕😷

[@user-fx5sw4jy7hYz9Hzi]

Japan and US is not the same animal. Japan could only manipulate the interest rate. But US can print money. This is no other country can replicate because US currency is held by many other countries. Even if US prints money the value will not go down.

[@winwinwithnature8463]

Why don't you want to go into details why Japan agreed to the Plaza Accords? Dont' want to show how the US forced them to?

[@xdKAYf0lcflhDi7mfXRFkw]

too inconvenient. lose the audience. lose subs. LOL

[@ericyujidurandal3094]

Because the United States is Japan's largest exporter. Europe, which has a similar industrial form to Japan, imposes large tariffs on Japanese products. And Asia was still poor at that time.

[@gemelwalters2942]

if that was the intention he would have avoided bringing it up in the first place. Comments like this I imagine are just here to gaslight folks and nothing more. The Plaza accords would require a whole other video, that's not the focus of this one. It's that simple

[@franciskenyi3139]

The U S A controls Japan with thousands of military bases in Japan they have no country another part of U S A.

[@dimassatrio985]

US threaten japan with earth quake and tsunami, also US dont wanna lose its hegemony

[@marcogh]

The Plaza Accords were pretty much a time bomb the US gave to Japan so it wouldn't have another rival

[@lucadesanctis563]

Too bad the US didn't notice another country near Japan which was also on the rise,way bigger and more menacing than Japan

[@lucadesanctis563]

@peter pan I know, but they realized it way too late. U don't start a trade war when u already gave them the entire World's supply chain

[@leonleon2021]

Why u guys sound so selfish? Greedy US wanna FK another country with Plaza accord 2.0 just to stay rich for themselves? Anyone thinks that way clearly has very questionable morality.

[@yogadarmawan3051]

Because japan already get influenced by US since got defeated from ww2. Thats was suck agreement

[@naurasal9165]

Now, US is trying force same sh1t to China. Poor Japan.

[@leonleon2021]

Japan in the 80s : our business is thriving. Plaza accord: I will end this man's whole career.

[@m.fahmiarsyad2600]

It was USA fault, japan become stagnan, 1998 crisis in Asia it was impact USA allies in Asia... now, China become dragon economy, and USA cant defend it... it was usa fault...

[@Voodoo3397]

@@m.fahmiarsyad2600 yea i agree. Orang Indonesia ya?

[@LegendNinja41]

Why is there barely any videos about the Plaza accord on YT? I searched for it but found very few with very few views, strange for something that had such a huge impact on the economy of Japan and even the world.

[@matttube9369]

Agree. Cant find much info detailed about Plaza Accord

[@burentori9620]

KZbin American owned company. They fear letting their "allies" know who the real enemy is

[@TheRealIronMan]

@@burentori9620 Bingo, even the limited information about Plaza Accords never mentions how America literally got military bases in Japan which greatly pressured the Japanese side into signing the obvious economic death sentence, free press my ass.

[@vultureTX001]

@@TheRealIronMan military bases? the only part they had was US wanting Japan to subsidize those base costs, a minor amount compared to trade$. But I seriously hoped you actually did read the plaza accords history and learn that the US was going to deflate the Dollar and inflate the value of the Yen if Japan did not sign. same for the other attendees.

[@Homer-OJ-Simpson]

@@TheRealIronMan ​ Japans economy grew at a much faster rate in the 5 years after the Plaza accord than it did in the 10 years before the plaza accord so what you smoking? The Japanese economy hit their problems some 7 years after the plaza accord. France and Germany also made the same deal as Japan and they didn’t crash

[@prodigiii712]

So basically US destroyed Japan’s economy. They were again forced to make concession in a revised Trade deal with the US. Is this how you treat allies?

[@paladin3784]

the US also boosted it in the first place

[@prodigiii712]

@@paladin3784 also nuked it before boosting it.

[@m.fahmiarsyad2600]

USA treat their Allies in worst way... now.... the real rival become dragon economy...

[@ps_pol_xbox9036]

every country acts in their own interests, the US felt threatened by japan's growth and was losing many jobs to the japanese so in order to maintain their status and not get beat out that's what they did. If you put Japan in US's shoes and this time it was Japan who wanted to revise trade deal with US, Japan would have done the same thing that the US did. So you don't talk as if you are so righteous.

[@hhsdhhsss1522]

@@ps_pol_xbox9036 thankfully the people’s republic of China will finally be able to cuck the US

[@sylverrain4620]

US tried to pull another ‘Plaza Accord’ on China…it lost.🤔😂

[@qjtvaddict]

BURN LOL The USA can get around the china problem by investing in central and South America and make those countries powerhouses. Then they can get saver economies to loan 💵 to other countries. The USA can also embrace crypto especially etherum or Bitcoin to counter China as China made one major mistake banning Bitcoin and trying to restrict crypto the USA can take advantage of this but are stuck in gender wars and other nonsense

[@leonleon2021]

Yep, nice try, Murica.

[@samalenyo]

@@qjtvaddict Lol. Good luck with that. US can't even hold on or aggree to enter with the TPP Aggreement and even to Paris Climate Change. And you are suggesting to invest like CHINA in infrastructure to LATAM? CHINA can afford to lend countries and invest in infrastructure because they have industrial capacity and financial capacity as well being one of the largest net creditor and largest saver (much bigger than even Japan). On the other hand, US has no any industry left whatsoever and it is the largest net debtor in which needs major capital inflows to sustain their debt and deficit. How can you push US to do more which resulted more capital outflows if at the first place US needs inflows. Your suggestion will lead US to default and increase more of its huge debt which is already unsustainable at present.

[@samalenyo]

@@qjtvaddict And crypto is also banned in US as major legal tender. It is allowed however as asset storage value for speculation but FED and any central banks won't allowed it as major legal tender (meaning mainstream payment in day-day business). And FYI, CHINA is the largest crypto mining especially bitcoin mining which controls at least 50%-60% of hash mining due to relativelt cheaper electricity production there. That is why whatever happens in crypto mining in CHINA heavily affects the world trading of crypto especially bitcoin.

[@theburden9920]

@@qjtvaddict except china was thenone whos doing what u were saying 😂

[@tvanwestrenen]

'Economy came to a standstill': It is just the growth that was affected. Factories still humming all over, unemployment low, no real worries. Why not say 'Growth stopped'? More accurate.

[@dominikr8428]

the fetishization of the ever growing GDP will be a growing concern for our exhausted planet

[@uppalsan]

because stock markets stopped giving returns and rich never got richer

[@Kobs.A]

@@dominikr8428 I always say this. When a country is developed gdp growth should be of less concern but rather quality of life

[@shubhamsagarsingh9451]

To be fair the Japanese unemployment had risen terribly

[@tvanwestrenen]

@@shubhamsagarsingh9451True. It went up from 2 to 5'ish percent. That is an unwelcome change in statistics. Terrible is too strong a word for this I feel.

[@RRENH]

Great video! However, one very important cause of Japan's Lost Decades was omitted: Deflation. The Plaza Accord resulted in a slumping economy in Japan in 1985. The Bank of Japan responded by cutting interest rates from around 5% to 2% over the next 5 years. The economy surged as japanese companies were able to borrow cheaply. A bubble formed however. This is the important part. To slow down the bubble, the Bank of Japan began raising interest rates sharply in 1989. This is what led to the bubble popping in dramatic fashion and led to a deflationary environment. Economist have little tools in the tool box to fight deflation and Japan has struggled to recover. I write all of this because there are many pressuring the US fed to raise rates right now due to inflation concerns. Raising rates too soon is dangerous as Japan has taught us that there are few remediea for deflation. Fixing high inflation is easy (just raise interest rates) but painful in the short term.

[@NeostormXLMAX]

Why is deflation so bad. It's almost never at any rate to take noticr

[@lamrof]

The video mentioned deflation.

[@Homer-OJ-Simpson]

Slumping economy in 1985? It was japans highest gdp growth in years.

[@animalsarebeautifulpeople3094]

Deflation os not bad for the people it's only bad for govetents that can't tax deflationary gains. When your money gains in value over time your standard of living goes up WITHOUT THE GOVERNMENT BEING ABLE TO TAX YOU. think about it for a bit - deflation is what kept the Japanese from living well enough for the past three decades in spite of the GOVERNMENTS INCESSANT MONEY PRINTING. BUT NOW THAT the debt is going to explode out if control its going to kill the economy. ITS THE MONEY PRINTING and NOT the deflation that's killing Japan.

[@williemherbert1456]

@@animalsarebeautifulpeople3094 No, it's the worse because you're experiencing stagnation of own economic growth, without it means there's no expansion of job vacancy being added up by said economic growth caused by investment spending.

[@GiboonCloudSmoker]

Really good format, short, informative, straight to the point

[@clmk28]

"Average growth rate of 9 per cent from 1955 - 1973" thats awesome; 18 years of solid economic growth.

[@gobimurugesan2411]

I believe China is doing better than this

[@theburden9920]

@@gobimurugesan2411 yeah your correct because japan benefitted from the korean war while china is built different

[@matttube9369]

@Gobi Murugesan China has a billion people, it makes a lot of difference.

[@charlesbeaudry3263]

The number may be true but hides the fact that the starting point was quite low. Same for China. They started from a very, very low place.

[@timothykangethe7700]

Thoroughly enjoying the Economic Content...like a thrilling Hike 👏👏 Keep it 💯👌

[@EconomicRaven]

Thank you 🙏

[@user-ze6qx1py2l]

Simplify this sophisticated question. A good job.

[@rubenraj3387]

IM USING THIS PRODUCTS TOYOTA, SEIKO, YAMAHA AND SONY. I LOVE JAPAN

[@matttube9369]

Yeeees

[@nareshmaran2627]

Dude your video is so clear and easy to understand ..Thank You buddy...Hope to learn more about the world from this channel

[@guitarlyenabled9180]

Nice work dude, that's some quality content you're putting out. Really helping me in my school project! Thanks ✨

[@EconomicRaven]

Thank you 😊🙏

[@charangerent4809]

Enjoying your channel.. keep up the good work .. thank you

[@EconomicRaven]

Thank you 🙏

[@senta5809]

why did i knew the US had something to do with it

[@RafiqueHola]

I thought my screen was dirty but actually that is the semi transparent gold coin in the raven's beak. haha

[@86samsky]

Really good vid have subbed because the high quality and knowledge shown. However it seems you spent along time talking about one half of the equation ( forgot what its called already 😪). Then you mentioned the spending how much how bad and wrapped it up real quick. Have to say was one of the most abrupt endings to a KZbin video i was enjoying. As i said im subbed so hopeful that it's a one off and look forward to more from you

[@EconomicRaven]

Thank you 🙏

[@puvanraj9395]

Great explanation

[@EconomicRaven]

Thank you 🙏

[@joseaguirre744]

The Great Explanation

[@brauliofernandesss]

Accurate video! But I would like to include some information: The 3 years I lived in Japan I experimented freedom of movement like nowhere else in the world. I could simply walk, cycle or take a public transport, in safe conditions, and go wherever I wanted anytime of day or night without the fear of being robbed or murdered. It was hard coming back to Brazil. Also, the food was excellent! The seasons are nature's show in Japan, and I got addicted into snowboarding on amazing mountains. The Japanese were always amazing, ambassadors of their country, something to be proud of. But there are downsides too: any mental disorder will be masked enough to allow you to work, but not be cured. I developed depression and got zero help from psychological services (and never got to see a psychiatrist). Japan is traditional, so, for a gay men who wanted to get married, I couldn't stay. At least in Brazil I could get that with the legal guarantees. The fact that I have a thick beard and tattoos were a problem in most of steam houses, since that is seen as foreigner thing or worse, Yakuza (Japanese mafia). I also intend to work in Cannabis industry, so I don't see that happening in Japan so soon. And that's the thing, Japan changes too slow. Most people can't wait.

[@starseed8087]

I really have to visit japan one day! Great country!

[@djcnrkg9930]

Same

[@Henryafton_]

i hope the country japan can growing the economy great like past time

[@jayshree1545]

come on manh, I am waiting for your next video for so long, it would be great if release more videos on economy of more different countries, or of some distributing networks, or case study on different smartphone companies

[@EconomicRaven]

We are trying to increase our capacity to produce more without giving up on the quality. It will always be worth the wait. Thank you for the feedback 🙏

[@hidden2444]

Wow, thank you for making this documentary.

[@EconomicRaven]

Thank you for watching 🙏

[@mamnis740]

How the hell do you only have around 50 subs. Very well explained. Definitely subbed

[@EconomicRaven]

Wondering the same thing! Thank you 😊 🙏

[@bsherman8236]

3,750 more in just one month

[@motherlandbot6837]

@@EconomicRaven You are being excluded (de facto censorship) by KZbin's very political and advertising driven recommendations algorithms. Your videos are right up my alley, but first turned up in my recommendations only today (6/30). Of course, I also subscribed!

[@jaynareynolds3684]

The should've bought huge parcels of land in Africa and South America back in the 1980s instead of buying old skyscrapers in Manhattan.

[@maximme]

good point there, they help the US property market BUT was accused of "stealing" our buildings....

[@roger4704]

@@maximme or it was just capital flight and they were happy they got half their money out

[@juliancohen9561]

Land has appreciated more in the United States compared to most African and Lat Am countries in that time period. And let's not even talk about property rights and how your average African dictator can just seize any land you wish to hold as an investment.

[@redricblue8790]

But what would they invest there

[@tmd-w1552]

@@juliancohen9561 pls know what ur talking about most African countries r democratic

[@jaybajrangbali4525]

Amazingly explained.

[@EconomicRaven]

Thank you 🙏

[@brothernet]

言之有物，言简意赅，短小精悍。谢谢分享😂

[@yogi9631]

A great video. I would say that a country/nation can only grow so much. Once it has reached a certain level e.g. max or optimal peak, then it would just float or hoover around that point and be happy and content at that point. In saying so, the debt of Japan is worrisome. It built a whole heap of white elephant projects in the 90's and 2000's (fiscal wastage) in order to keep the economy pumping along.

[@gordonbgraham]

Japan's debt is primarily to itself, which it can write off

[@zurinarctus1329]

It will devaluate the currency and create the nightmarish scenario of hyperinflation. The US can only write off its debts with minimal issues through leveraging its status as a superpower. Japan does not have that option.

[@gordonbgraham]

@@zurinarctus1329 In history, there is no country which had a financial crisis because of debt denominated in its own currency. Also, Japan remained the biggest creditor nation for the 27th straight year, according to the Ministry of Finance as of 2019. The net value of assets held by the government, businesses, and individuals stood at 328 trillion yen ($3 trillion) at the end of 2018. Japan’s net external assets were about 1.3 times higher than those held by Germany, the world’s №2 creditor nation with 261 trillion yen in net assets at the end of 2018. Most Japanese people don’t know this, simply because the media doesn’t report. It only talks about Japan’s debt, not about Japan’s assets at all.

[@animalsarebeautifulpeople3094]

Wow you can't write it off are you kidding me? The Japanese retirees are holding nothing but I O Usfrom the government. In order to make it good they CANT write it off because then these retirees will be PENNILESS don't you get it? The government will be forced to print print print more money and this WILL destroy the economy

[@animalsarebeautifulpeople3094]

@@gordonbgraham you never heard of weinmar Germany?

[@gordonbgraham]

@@animalsarebeautifulpeople3094 No

[@_Epsilon_]

Why Japan agreed with Plaza Accord? Because it is not a sovereign country that's why. Same we see right now with EU committing suicide in the name of US.

[@ndwiggins23]

What are your thoughts on MMT

[@ninojohnsabuero9492]

"Japanese would prefer to work with an emotionless machine than an actual human being from another country" that killed me AHAHAHA

[@dreamadventure8220]

every country wants automation of their industries now. japan is just ahead in race

[@teweldemat]

What benefit would expansion of the economy bring for an already rich country like Japan?

[@khan-cricket]

can you please make a video about Plaza Accord and its consequences. Why German does not seem as bad as Japan after signing that accord

[@pellergin]

A Redditor goes into this. West Germany eventually 'absorbed' East Germany, legitimately driving up real estate prices of West Germany. Also only 9% instead of 35% like Japan, of exports were sent to the United States.

[@christianmisak9348]

Could you make more European countries ? I'd be the most interested to see Slovakia Ireland austria :). I love your videos, they're easy to follow and understand

[@metalfan5596]

What would actually happen then if the economical bubble pops, by something?

[@dmmusicvideos4416]

Hyperinflation

[@abdullahrao1963]

I have a question that i would really appreciate if you answered You mentioned in the video that the Japanese stock market shrank due to low interests and large number of people buying stocks using loaned money. But why couldn't Japanese manufacturers use that in their favour? Like people had money that they were willing to spend, why was that they were not buying japanese products with that money, i mean you can never have too much stuff right ? Also why didn't the japanese government just imposed tariff duties on imports to lessen the import to export disparity? As always , keep up the good work. I really wish that you hit your 1 million mark as soon as possible so that i can boast amongst my friends "hey i was one of the early ones who found this channel"

[@anmolpatel793]

The money in stock market doesn't go to the companies except during IPO phase other than that it is just two people betting against each other

[@henrytep8884]

It's called debasing their currency. Japan currently is in the final stage of a long drawn out deflationary period. It's demographic and debt repayment are both deflationary. To produce gdp, they need their central bank keep interest low so they can borrow and keep unprofitable companies alive so that people can have jobs. In the long run though, the printing of money leads to debasing of their currency. Debasing=/=inflation. They can't create inflation due to the reasons I've pointed. The local economy also doesn't have enough spending power to be an economic power house due to their average age. As a country's population gets older on average, it becomes deflationary because you lose the economic driving population between the age of 20-55, and instead have a nation full of old people who need to use the government services, which is deflationary. As for the tariffs and import duty, that would drastically destroy Japan's ability to create fair global trade. Basically tariff are a form of economic war, and when one country becomes to obsessed with tariffs, it usually leads to retaliatory tariffs by other nations.

[@alesh2275]

Simplistic analysis

[@ijs8548]

if you notice the list debt per GDP most of the countries are in debt, and the world bank says the creditors are from rich countries , can you explain to me how is that possible like , if almost all the countriesa are in debt who are these creditors ?

[@dmmusicvideos4416]

Other countries, private banks and investment fund companies

[@tejaswinig8821]

Thanks for raising this debt issue. Is there not any rule of how Much world bank can lend to borrowing country? How come both borrowing nation and the lender go on till 250% of Gdp value?

[@reya597]

95% of japan debt is from Japanese investors

[@ashvink3717]

So what's your next video will be about?

[@EconomicRaven]

you will find out soon!

[@user-jh7yf6ux6d]

So true!

[@devendrabaskey1]

great video , please analyse india

[@patoruairc]

Surely after a few decades the aging population will die out and the resultant population level will be more sustainable: the economy will adjust accordingly. Considering the current climate crisis. Isn't this what we all want? A sustainable society consuming less.

[@Raptorman0909]

While the Plaza Accord surely played a role the biggest factor by far to explain the decline of the Japanese economy was that the USA and the west switched to China as the destination of choice for manufacturing. On January 1st 1990 China wasn't even in the top 10 in world economies and within 20 years they were #2 -- that came at the expense of Japan and the working class in the US and west.

[@Homer-OJ-Simpson]

Japans economy grew at a much faster rate in the 5 years after the Plaza accord than it did in the 10 years before the plaza accord so what you smoking? The Japanese economy hit their problems some 7 years after the plaza accord. France and Germany also made the same deal as Japan and they didn’t crash

[@morceen]

@@Homer-OJ-Simpson That's the point. The Plaza accord was a time bomb, and the ones who designed it knew exactly what they were doing and why they were doing it.

[@Homer-OJ-Simpson]

@@morceen it was time bomb? Yet no One else from the group such as Germany, France, and UK got that bomb later? They are devalued US to their currency. It’s almost like the reason Japan fell then stagnated had a lot more to do with numerous other factors? Nah, it must be the US since the CCP and KGB said so

[@morceen]

@@Homer-OJ-Simpson Japan was the target of the accords as they were the one competing with the US, since Germany was concerned with Europe more than the US, and France was concerned with Africa, while the UK was and still is a joke. Throwing "KGB" and "CCP" here and there doesn't make your argument more valuable, it makes you look emotional. If anything, this Plaza accord and the phobia of Japan taking over the US economy is one of the reasons China was able to raise up economically. And now look at the irony, China isn't Japan, and the US can't do ro China what they did to Japan, neither they can manipulate their currency to get an advantage over China, since the Chinese also manipulate their currency too to counter the US.

[@Homer-OJ-Simpson]

@@morceen Japan was the target yet 3 other nations where also targeted? You aren’t even making sense. So how is they they all devalued the USD to their currency but ONLY Japan would be hit with problems YEARS later? You’re just repeating kgb and CCP talking points there Mao or Vlad

[@parothamithai9546]

Solution is good working condition so instead of burning out due to overworking we get more efficiency in less work

[@grafspee45440]

do you think you'll open a patreon eventually? I'd love to show some support.

[@EconomicRaven]

Most probably we will. Thank you 🙏

[@bencx1986]

Great video. Waiting for video about China.

[@EconomicRaven]

the Raven will fly over China soon!

[@charles2521]

The US tried to censor the book Poisoning the Pacific by Jon Mitchell, it would not be the first time that they try to slowly poison an enemy to make them more docile and submissive. Perhaps this explains why Japan has far more autism and "herbivore men" than any other country in the world

[@levino4997]

So... Its US fault for bringing up that Plaza Accord huh...

[@J__C_]

Abenomics=❤️

[@Rod-bp8ow]

Japan is a country that has many possibilities, waiting to be unleashed. 2022 onwards SMEs..

[@bobmenzies4137]

Hot air rises cold air falls in between was all imagery And thats just all.

[@bes_t_kdrama]

💛

[@HLC64]

In Japan peak Toshiba was crucified because it was doing better in nuclear business ... what happens to Toshiba and GE?

[@mainmusik3677]

Maybe try to move to banking industry. Become financial hub. And tourism too. Health industry. Etc etc. Move to service oriented industry. Just like singapore. Hope to attract oversea money to boost their economy.

[@sssr42]

Japan should join hands with under developed countries in form of joint ventures with low finance input and high technical out put to improve that country's out put in steel, cement and other Agricultural goods. There will be more Japanese technicians in that country and also that country they work can improve its economy. Here Japanese should learn bit of English to do this. This is my experience working with Japanese people in different countries.

[@NativeVsColonial]

With this trick or accord, the Japanese economic growth was made stagnant, and made things easy for the USA to control the East Asia.

[@maximme]

1:30 that's the RED LIGHT district of Japan...subtle message?

[@robsonwilianwinchester9726]

How you know that?(humn everything is written in Japanese)

[@qjtvaddict]

Japan has duopolies too keretsu

[@edwuave]

Answer not found in the video - US was the reason. Bonus - this is also what happening to china

[@ashiks.a.4560]

china is not a puppet .so i don't think china will be like japan

[@burentori9620]

@@ashiks.a.4560 hence the constant bombardment of anti-china propagandas from their medias.

[@troywardjr1216]

It was not the plaza accord even till today they are dealing with steady deflation.

[@tellmemoreplease9231]

The Plaza Accords forced an independent central Bank on Japan. Thats what happened to Japan. Before, interest rates and amount of borrowed money was controlled by the Finance Ministry, all during the manufacturing boom years. It is as clear as day.

[@youngfew834]

There is a trick to Japan's debt. The government borrows money from the Bank of Japan for public works projects, but the Bank of Japan borrows money from the people. The Bank of Japan borrows money from the people. Japanese people save money without spending it, so there is a lot of money in the bank. The banks have to lend out the money to pay interest, so the government spends more and more. In other words, the Japanese government is not borrowing money from abroad, but from the Japanese people. Japan also has the highest net foreign assets in the world. In fact, it is the richest country in the world.

[@user-qi3rm2wr5m]

Ahh I see. So government (through bank) was given lots of money by the people, and they invested that money poorly. Some solutions to this should have been (1) lowered interest to depositors, (2) encouraging people to spend their money themselves, (3) a standard return rate for public investments. Number (2) is the result of big government. Companies don't feel pressured to be customer-focused if their money comes guaranteed from the government, whereas they would be if their income-source came from people spending their money. There should have been a healthy mix.

[@zurinarctus1329]

No. As long as Japan is attached to the United States, Japan won't make a comeback. The US corporations are encircling Japan for vulture raids, China completely surpassed Japan economically and ASEAN follows the same suit, South Korea and Taiwan stole the electronics plus semiconductors crown from Japan, the poverty rate in Japan is rising faster than the US if look at the temp workers data and real wages metric. Still, the biggest issue for Japanese permanent decline is the American dominance over the country. American investment funds, banks, equity firms have long tried to tear and liquidate Japanese valuable assets. They succeeded with Toshiba, Sony, Olympus, and a few more. When the West finished stripping Japan of its assets, then the game is over for Japan. If Japan defies the West on not allowing "barbarians liquidate assets", then Japan has China to fight whose economy might gradually absorb Japanese Keiretsus under the control of CCP - The West uses China's rising power as leverage to force Japan complying, sort of a geopolitical threat. Japan could not be this bad today if it reformed the economy well in the 1980s, never got drunk on a stupid bubble, actually educated its own people for the future as China did, and didn't entirely put all eggs into the basket of America.

[@jeffrelf]

Cancer wins too, Not just communism.

[@qjtvaddict]

Japan should surrender to China at this point it’s over.

[@zurinarctus1329]

@@qjtvaddict They surrendered to the United States completely and already. Japan bet itself to be better under the US rule than Chinese rule. Oh boy! How fatally wrong they are now. South Koreans utilize their friendship with China to get rich faster and better than Japan. South Koreans are now richer than Japanese on average, yet Japanese people can't stop calling Koreans barbaric.

[@user-jh7yf6ux6d]

In bubble era, it was really bubble. One reason that made Japanese economy increase was interest towards Japan especially from US due to the Cold War between US and USSR too. I think when USSR collapsed that that interest also went down.

[@theburden9920]

US interest went to china

[@ujwalgaikwad242]

I have seen you most of the videos on the world class counties... All of the were awesome.. I mean really awesome! I wish I could watch some of the vidoes on developing countries like India, Pakistan, Bangladesh, Myanmar, etc. Thanks for sharing vidoes. 👍🙏🏻🙏🏻

[@EconomicRaven]

the Raven Will Fly Pakistan, Bangladesh and India soon! Thank you 🙏

[@baronvonjo1929]

Honesty the Plaza Accords as I understand makes sense for the US. In his video in Germany he said the Germans depreciated their Mark to help their economy compete. Idk why Japan agreed to it, but see it this way. If the domestic brands of a country cant compete with foreign imports. Then all the potential employees have no jobs. No jobs equals no money to buy those imports. So it sounds good to me. But idk, economics isnt my thing.

[@levelazn]

rest of asia wasn't an viable economy back then. and china didn't reach the size it is today. japan's future is in china. no the u.s

[@yeonggyuheo3349]

No democracy no future

[@ungaaatioo2359]

Can you make one on South Korea?

[@EconomicRaven]

the Raven will fly over South Korea soon!

[@ungaaatioo2359]

@@EconomicRaven 🎉🎉

[@TheRealIronMan]

The greatest lesson for Asian, Middle East and African countries, if you are rising, watch yourself.

[@popeye8364]

I love the Japanese, they are amazing

[@KommentarSpaltenKrieger]

Why does Japan need long-term growth?

[@115islandscompass6]

If you want to explain this issue exactly, you should also mention the facts below. If not, this is not accurate information. Japan agreed to the Plaza Accord, which was to take place in a more gradual phase. However, the appreciation of the yen was progressing rapidly. The Japanese government, which suffers from this sharp appreciation of the yen, called on the United States to delay this change, but the United States ignored it. Also, you are not referring to the "US-Japan Semiconductor Agreement". The industries that have driven the Japanese economy are considered to be electrical appliances and automobiles, but the semiconductor manufacturing industry was also one of the important industries. The United States forced Japan to make an unfair agreement on the basis of its trade deficit. Agreement summry: •20% of semiconductor chips used in Japan must be chips made in the United States •High tariffs were imposed on Japanese tips. Since then, the Japanese semiconductor manufacturing industry sought to avoid high tariffs by relocating factories overseas, especially to China. After that, talented people and technology had stolen, and cheap copy chips became being sold in large numbers in China. As a result, Japanese semiconductor manufacturers lost market share, invested funds, technology and talent. Those unprofitable businesses have been bought cheaply by companies in China and the United States. And this is what the United States and China have done together. The relocation of factories overseas has progressed further due to the appreciation of the yen, and the hollowing out of industry in Japan has progressed. The result is a “lost 30 decades”.

[@115islandscompass6]

In addition, most of the Japanese government bonds, which are the debt of the Government of Japan, are owned by Japanese companies and Japanese people in Japan. The Government of Japan, which has the authority to issue yen, can repay the debt to the debtor at any time. Therefore, there is no problem.

[@115islandscompass6]

Under the Plaza Accord, the domestic value of Japan's foreign dollar assets has been reduced from approximately 600 trillion yen to 300 trillion yen. I think this is a major cause of Japan's decline. First of all, Japanese companies do not try to convert dollar assets to yen to avoid the risk of the strong yen because they do not know when this will happen again. For this reason, even if Japanese companies make profits overseas, they try to keep capital investment and wages to employees as low as possible in Japan. Employers with low wages avoid being expensive, that is, getting married or raising children. As a result, the birthrate is declining. Japan could still be fixed now if there are no future coercions from the United States such as the Plaza Accord or the Semiconductor Accord. But the Biden administration is also trying to get Japan to buy $ 2 trillion in US Treasuries.

[@user-ze6qx1py2l]

@@115islandscompass6 What I don't understand why Japan's economy lost in the recent digital era?

[@115islandscompass6]

@@user-ze6qx1py2l The biggest possible reason for Japan's delay in digitization is the United States. Until now, whenever Japan has moved into a field that the United States emphasizes, the United States has used every possible measure to crush it. Also, even if there are companies in Japan that carry out such businesses, the investing side, including the government, does not provide / lend funds. For example, it takes a huge amount of money to make SNS bigger, because the more users there are, the more physical servers are needed and the more management work.

[@be12]

@115islands Compass I've read about the Plaza 'Accords', the Semiconductor 'Agreement', and the 'voluntary' automobile export restrictions (putting quotes around those because, y'know) but I didn't know about the friction between the US and Japan due to the sharp appreciation of the Yen, or that tariffs were a major reason that Japan moved so much manufacturing to China. Is there anyplace I can read more about these details?

[@sak1730]

What about America stopping the Japanese economy. Why isn't this mentioned????????????!!!!

[@Surbhit7]

Is Japan trying to create culturally relevant innovation like genomics, AI, 3D printing, electric vehicles, etc. apart from just robotics?

[@rehanfauzan4623]

china is already surpassed japan in that regard

[@jutea9858]

Genomics: I don't know about this. AI: Japan is definitely not good at this. 3D printing: Don't know. Electric vehicles: Japan is betting mainly on hydrogen cars. They have some electric car technology, but they are not good enough to compete with Tesla and some Chinese market EV brands.

[@voltgaming2213]

japan is greatly innovating in AI and robotics to increase and maintain quality manufacturing

[@EricChien95]

Japan was semiconductor powerhouse back then you know the thing that is in every device that are able to compute.

[@NeostormXLMAX]

@@jutea9858yeah japan is slightly fucked when it comes to tech, south korea and taiwan and even china beat them on this, Japan has cultural power though they can win a cultural victory

[@purinat_sun]

I’m not a fan of economic interventionism but why didn’t they just hand out vouchers that could only be used to purchase domestic goods and services? You can’t just give people extra cash and expect them to spend it on whatever you want or simply tell them to do so. If they could increase the demand for consumption in the right market sectors, there would be no need for quantitative easing and further intervention. Companies would take out cheap loans by themselves to scale up production relative to that demand.

[@Longlius]

Because people will just trade those vouchers for liquid money anyway. Handing out vouchers you can only spend on domestic goods is a sign that the government has low confidence in the economy and is the fastest way to valuate currency that can be internationalized. If you think your vouchers might not be able to buy anything due to economic collapse next year, you'll start selling them for pennies on the dollar to get money you can use down the line. This is what happens in any country that tries to run a closed capital account (see: current China).

[@kendzi_seto]

US afraid that Japan could be able for automatic production economy without foreign workers.

[@qwerty6789x]

Horishet they are stil using windows Vista 09:08

[@CiscoTokyo]

I am a foreign AI engineer working in Tokyo. I think Japan needs an easy immigration policy with a family reunion option(parents of new citizens or PR can not have permanent residence in Japan ) and ease the language barrier.

[@morceen]

Japan (and most of the world especially Asia) do no grant citizenship that easy anyway.

[@maolo76]

The solution is to disconnect from the world economy. Only trade in gold.

[@luiseufemiodiazramos7152]

Lets go Ibarra Jra

[@philipwong895]

In 1985, Japan complied with U.S. directives, metaphorically committing seppuku.

[@jeremycull8876]

They need to export more, at a competitive rate. Would be nice if this could be achieved as some sort of logistical "hub" for Chinese exports... Or other nearby countries. Could be a hub for the u.s even, despite distance. The thing is, Japan is also so isolationist, which makes the concept of being a world exporter somewhat strange. In any case, I thing it would have to be a politically brokered solution more than an economic one. Even if that means via business partnerships. It's really about seeing returns on the initial investments. And the infrastructure is there. It could be said the lack of diversity is responsible for everyone seeking the same solutions at the same time; like moving to the major cities, or taking out loans when the opportunity arises. Maybe enough diverse and appealing opportunities to choose from as well. I mean, why should agriculture, the countryside etc. Become so unappealing? What are they not doing differently to adapt with the times? And as a smaller nation, a lack of diversity in the economy makes it a more pressing problem; with a large enough country the numbers game will win out. China will probably not have this problem for instance.

[@peterpan4038]

Their problem with future exports is simply a lack of manpower. Unless they find a way to automate EVERYTHING, they won't be able to produce enough AND feed themself. All common solutions to their problems have either already failed, or arent't viable with an isolists attitude. Oh, and China is feeling the aftermath of the one Child policy more and more each year. China will either turn into the strongest superpower the world has ever seen, or lose decades of progress in a decade or two (aka fall hard). I'm not smart enough to know what will actually happen down the line, i can only guess.

[@vinniechan]

their mindset has changed in recent years and more accepting to immigration, striking deals with EU and Brexit UK so they aren't as isolationist.

[@peterpan4038]

@@vinniechan That's trade(!) politics, but on the very real streets basically nothing has changed in that regard. Overall Japans politics are even trending towards more nationalism...

[@georgebrantley776]

A nation that relies on imported food cannot afford to be isolationist...given the China has the military capacity to block all ships to Japan at a moment's notice by blockading the East China Sea, and only the US has the naval power to stop this from happening, Japan should diversify itself a LOT more if it insists on doing things their own way, else it will be caught in the crossfire of any Pacific conflict--but unlike SK, without sufficient population to handle it

[@peterpan4038]

@@georgebrantley776 That's the insanity here: Japan is investing in it's military, but before ensuring they have a secure supply of food. At the very least: the Chinese won't be hungry in a conflict.

[@LG-th8xt]

As the largest creditor of American bonds, Japan is also the most indebted country, with 2.5 times its budget This means that Japan borrows cheaply, it owes only the principal because it covers the interest through American bonds. The Americans give loans to the Japanese as long as they co-buy American bonds. In conclusion, the Americans dropped the third atomic bomb on Japan, only they did not press the trigger. For now!

[@onlineempire4204]

Do you know Japan signed plaza accord with America on world trade center in 1985

[@BlissinthemiX]

Here your problem right there ..they are still using Windows Vista 9:10

[@barito7]

So why don't you wish to go into why Japan agreed? This seems to have resulted in lost decades.

[@prodigiii712]

Are you kidding me? They’re less competitive. Me and all my family members in America all drove Japanese cars. There are far more Japanese cars than American cars on the street.

[@Longlius]

In terms of internal-combustion automobiles sure, but the US is already leagues ahead of the rest of the world in electric vehicles. Not to mention when you visit the factories that produce Japanese cars, much of the industrial machinery used within them is... American. US mfct is at such an extreme end of the value-added scale that it no longer produces consumer goods but rather the machines that produce those consumer goods.

[@prodigiii712]

@@Longlius US made products need high Maintenance. Electric cars make very very small percentage of car market. Tesla is the only EV company. And they’ve plants in Germany and China. And I doubt whether all machines used in Japanese factories are made in the US. Boeing is falling apart. And the cars made here are so bad that Americans prefer foreign cars.

[@MultiSciGeek]

Who wrote and narrated this? Some fire Nickelodeon ad writer?

[@akob3349]

In US, the government use taxes to build freeways. In japan the government borrow money from citizens to build freeways, but poeple still pay the fee for freeways. If you drive a car yourself form Tokyo to Osaka, then it could same or more expensive than use air plain or the train. Meanwhile, US' poeple don't pay any except some bridges.

[@user-ki3fh1pd2r]

The Japanese economy remains stagnant because of this agreement

[@asahel980]

Japan is in Debt, Its like living middle class ,but living pay check to pay check(no savings) and needs to work 70-100 hours a week.

[@ronellee7497]

Thats why they help Philippines now

[@JoonPark1]

Why is deflation bad?

[@Chris-pq3wp]

Less demand causes lower prices. This means unemployment as people are not buying enough

[@aoeu256]

It reduces spending, and this reduction in spending causes reduced salaries and lay-offs which further reduces spending in a chain-reaction.

[@FarfettilLejl]

2:10 - so they colluded to manipulate the price of a currency. Ermmm... got it. Cool and normal

[@baronbrummbar8691]

increasing Competition by crushing cartels, more family friendly policies, splitting a asset administartion away from the central bank schould help fixing japan ..... so in general give up keynes failed policies and replace them with austrian once

[@henrytep8884]

Austrian systems can only exist with cryptocurrency. All central banks must move from Keynesian to mmt, they can't afford to let their largest population who own three largest amount of asset to default, but crypto is the plan b for central banks. This is true for all nations who have a demographic crisis, and we all know Japan have the oldest population and that their country is already using mmt as fiscal and monetary policy. But we also know debasing a nation currency doesn't work, and that for most nations and especially the citizens, going to sound money is important. In the past gold was the answer, but today crypto is far superior as money than gold and is more highly adopted and utilized in Asian nations. Japan has no out for their currency, they're already in the debt super cycle. The only chance the populace have is to adopt a new type of money.

[@baronbrummbar8691]

@@henrytep8884 nonsense austrian monetary policy is posible in all non depth based Currencys

[@azanali6937]

Please a video on Pakistan's economy

[@abhishekpaliwal4750]

Once upon a time....

[@dyingindia335]

Biggest advantage for china is it is authotarian government so china is able to tackle all issues, china will definitely able to boost birth rates to tackle aging population.