They got overtaken by Germany a country with 50% lower population and the gap is widening. Their gdp per capita is below some Eastern European countries and way below other developed countries that used to have similar gdp per capita. Yen’s devaluation is getting faster so in the future I don’t think Japan can even be called a first world country anymore. What exactly caused this? I know Japan has been in recession since the early 90s but this last few years seem to be extra harsh on Japan
In: Economics
There’s a lot of answers here that don’t, I think, get to the heart of the issue. Japan after WWII eventually landed on an economy that’s partially open markets, and partially centrally planned. History suggests that open markets will always win in the long term, either by beating competitors or taking over the systems in which they exist. In the case of Japan, open markets have failed to take over the system in which they exist, and as such are being beaten by other, open-market economies.
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