The Myth of Japan's 'Lost Decades'

Today all leaders of developed countries are desperately acting to avoid so-called "Japan-style Lost Decades", but as I said before, the basic understanding about "Lost Decades" is likely misleading by Western Media.

Thanking to Western media-led propaganda, Japan could have enjoyed "Lost Decades".

How can such facts be reconciled with the "two lost decades" story? I don't think they can. There is clearly a contradiction here, and after studying the facts on the ground in Tokyo for decades I find it hard to avoid the conclusion that the story of Japan's stagnation is a media myth.

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The Myth of Japan's 'Lost Decades' - James Fallows - International - The Atlantic

---------- Post added at 15:56 ---------- Previous post was at 15:49 ----------

An Open Letter to Professor Edward J. Lincoln
The letter below, to the Clinton administration's chief Japan economist, is self-explanatory.

As you understand better than anyone, the evidence that the press has – yet again – completely misconstrued Japan is everywhere. You yourself agree on a key part of my analysis that, in striking contradiction to umpteen reports in the great newspapers of record of the English language ....

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An Open Letter to Professor Edward J. Lincoln | Sandcastle Empire

When so-called "Lost Decades" campaign started some ten years ago, I had to stop laughing .... and remembered the words "You may be able to deceive people sometimes, but you cannot keep deceiving people forever."

When one more television, refrigerator, and car become unnecessary at the average home of advanced nations, the philosophy of "luxury is a virtue" collapses.
The capitalism age is going to accomplish the end.
Japan attained 16% of economic growth in the income-doubling policy in the 1970s.
It was the growth by which quality (national income) and quantity (economic magnitude) suited, and it was accompanied.
Now, it is growth of only the scale (quantity) on which income (quality) does not follow the growth of a newly emerging country including China.

It became impossible to already expect the growth which was able to balance quality and quantity.

Although a car is not needed any longer, if it is a fuel-efficient pollution-free automobile, I want it.
You may buy it, if controllable from outside oh house, although neither a refrigerator nor a washing machine is needed.

Since families' all the members have television, it is already unnecessary.
however, Interactive(by mutual communication) If there are some which can do conversation watching the same program, I would like to buy it.
Consumers came to ask only for the quality instead of quantity in japan
It is the change from a thing to importance of mind

There are many economists that it is said today's economy of Europe is reproduction of Japan's lost decade from 1990
I think they are stupid

Japan is a super developed country of the new age^^

Japan adapted from the 1990 ahead of all developed countries in the new "non-growth times".^^

The European valid method is the dismantling of the euro system and the dismantling of EU

next, Each EU country cannot but devote in high quality, and an innovation by themselves in non-growth times.

It is fraud that asks Japan and China for the purchase of a potential default national bond and EFSFbond.
it is like "Won't you please contribute a little something?"
Time has came that Europe and USA ask it for ASIA

The growth principle led by the West is finished.

27th Oct 2011 was the day



U.S. Faces Much Worse 'Japanization'
U.S. Faces Much Worse 'Japanization' - Worldnews.com

'Japanization' needn't be an economic curse word | The Japan Times Online

Caster51, What I want to say is ... "Japan's Lost Decades" was misleading by media, English-media, to benefit from Image of Japan's stagnant economy. Typically Yen-Carry Trade.

It was also beneficial to Japanese economy as Japan needed to lower Japan's value and stimulate manufacturing sector. That's why MOF also continued to tell that government debt is reaching 200% GDP and thus unsustainable and we need to raise tax !

Japanization is not so bad.

It is a myth and and it has been two decades and counting already. The reason why the western media perpetuates this myth is not because Japan's economy has been stagnate, it's because Japan has survived this stagnation with little to no inflation. In fact there has been deflation and central banks despise inflation as they feel this will further stagnate an economy in that people will put off purchases of major items like cars and TV's and refrigerators and such until "later" thinking that said items will probably be cheaper. This couldn't be further from the truth because when a person needs and wants these items they buy them now regardless of the cost. When Hi-Def TV's were selling for $4-5,000 a pop they were flying off the shelves because, even though people knew they would be cheaper in the years to come, they wanted them now.

I'm sure the same held true in Japan the past 20+ years. I'm still in awe when I visit Japan that the vast majority of items I used to purchase in the late 1980's can be bought for relatively the same price and that includes the renting of a 2DK apartment in my old neighborhood! However, you won't read about that, or hear/see it in any of the major media here and probably never will as god forbid there should be deflation. People might actually save some money like in Japan, and central banks with their fiat currencies do not want that.

And Astroboy is right about the yen-carry trade in that governments and corporations would borrow vast amounts of yen at little to no interest rates and invest it in higher yielding accounts and markets and keep the profits. No one talks about that in the media! However, they do love talking about how expensive Japan has "become" compared to western economies. When they do this they are misleading the public by not telling them the truth about Japans deflation and stagnation and the fact that Japan is only more expensive because their own currencies, when compared to the yen, has been severely devalued.

Western countries can learn a lot about Japan's two lost decades, but they won't. They'll still let their central banks control their failing economies with continuing false inflation and policies that will never work. One look at the troubles in Europe should tell you that and they will soon be coming to a country near you. If Japan can survive 20 years of stagnation with non existent inflation I believe most countries could.

Pachipro said:

Western countries can learn a lot about Japan's two lost decades, but they won't. They'll still let their central banks control their failing economies with continuing false inflation and policies that will never work. One look at the troubles in Europe should tell you that and they will soon be coming to a country near you. If Japan can survive 20 years of stagnation with non existent inflation I believe most countries could.

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Although I don't discuss the details, I think US economy will soon be back to normal becsause US demography maintains healthy structure. However, EU economies need to learn Japanese lesson without any doubt.

The Myth of Japan's Failure
Opinion | The Myth of Japan's Failure (Published 2012)

The strategy seems to have been particularly effective in Washington. Believing that you shouldn't kick a man when he is down, chivalrous American officials have largely given up pressing for the opening of Japan's markets. Yet the great United States trade complaints of the late 1980s — concerning rice, financial services, cars and car components — were never remedied.

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I don't know the intention behind this article, but Japan's policymakers better think that US government has begun to change the rule of "Game" again through TPP trade negotiations or military policies. I personally prefer "doom-and-gloom Japan" to successful economic model.

A Reply to Paul Krugman .... by Eamonn Fingleton A Reply to Paul Krugman | Sandcastle Empire

Fingleton knows about the Japanese economy better than me. He hits the nail.

In any case there are differing political agendas: in the US there is a strong imperative to make the numbers look as good as possible. By contrast the key agencies of Japanese power, the Ministry of Finance and the METI, are trying to talk the yen down and keep Western trade negotiators at bay. The lower Japan's economic profile, the better, from their point of view.

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From lesson learned from history, "high-profiled Japan" must be avoided to be free from "Japan-Bashing".