Hello folks.
I’ve always wondered how Japan was able to amass such immeasurable wealth in the 1980s and immediately lose it in the 1990s. What factors led to such a period in Japan’s economy?
Any simple explanation would soothe my inquisitive spirit regarding this question. Thank you!
In: 6
Imagine you have a lemonade stand that becomes super popular. You sell lots and lots of lemonade, and you get lots of money. That’s like Japan in the 1980s – they made many cool things like cars and electronics, and people all around the world bought them.
Then, you think your lemonade stand is doing so well that you start spending lots of money on stuff like fancy cups and decorations, thinking it’ll keep getting better. But suddenly, people stop buying your lemonade because they find other options.
That’s like Japan in the 1990s – they spent too much money on things like land and buildings, thinking their success would last forever. But other countries started making cool things too, and Japan’s economy slowed down. The money they spent didn’t help them as much as they thought, and they lost a lot of their wealth. And that’s why Japan’s economy went from really good to not-so-good.
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