ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Japan's Troubling Economy

Updated on February 11, 2017

With the bursting economy nowadays, people are easily fooled by the illusive outward aspect of some seemingly developed countries. Most people seem to view Greece as a country on the verge of bankruptcy due to the large amounts of debt under its name, but shockingly Greece does not acquire first place when it comes to the amount of debt.

Source

Japan is one of the fastest rising economies after WWII, yet its government debt has reached an enormous figure ($10.46 trillion) that makes the Greek debt ($323 billion) pale in comparison. How did Japan, a technology powerhouse acquire so much debt? A reason that contributes to this phenomenon may be the government’s efforts to revive its economy, which is speeding downhill after the year of 1991. This fast decline is due to the bursting of the Japanese asset bubble, during which period is most commonly referred to as the lost decade. The government lost tremendous amounts of money during that period, and even more later on by investing large figures into the Japanese market hoping to revive it, which sadly had little effect.

Another reason is the large amounts of pension that burdens the government. As the gap between the number of working class and senior citizens eligible to receive a pension widens, heavy tax burdens are laid on the shoulders of the working class and the government, leading to the Japanese government desperately in need of methods to encourage the rate of childbirth. Aging population is a common problem in many countries such as Germany and China, but the problem is especially significant in Japan.

The given reasons are just the two most influential factors out of many. Although the Japanese government has an alarming amount of debt, I find it unlikely that they will declare bankruptcy within this decade, given its overall economic wellness (e.g. its technology empire, its anime industry, its tourism and exports all contribute greatly to its economy) and the financial state of the country. If you judge a country’s financial capabilities simply by its outward appearance, the truth lurking behind will most definitely shock you.

The Lost Decade

  • The time after the Japanese asset price's collapsed within the Japanese economy.
  • Over the period of 1995 to 2007, GDP fell from $5.33 to $4.36 trillion in nominal terms.
  • Real wages fell around 5%, while the country experienced a stagnant price level.
  • The economic effect of the Lost Decade is well established and Japanese policymakers continue to grapple with its consequences.

Comments

    0 of 8192 characters used
    Post Comment

    • profile image

      Howard Schneider 

      2 years ago from Parsippany, New Jersey

      This is certainly a very disturbing situation for Japan and the world. A Japanese collapse would lead to huge ripple effects around the globe. This should be a cautionary tale for other nations such as the United States. Excellent Hub, Christine.

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://hubpages.com/privacy-policy#gdpr

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)