| > (b) Japan lacks natural resources (mineral, oil/gas etc.) and is hugely reliant on exports to keep the domestic economy running. Natural resources aren't a good predictor of economic success. In fact, most resource rich countries seem to suffer from the "resource curse". > but the innovation in technology and in process improvement that once enabled the amazing growth that Japan saw seems to have given way to a rigid way of thinking and a culture of just following the once innovative processes instead of continually improving them. To be frank, I think they were just as rigid back then - if not more so. The only real difference was demographics and an asset bubble. As their population ages, they stop spending. Lower spending means lower income for companies who then slash R&D and new product development. It's visible in other sectors too like entertainment, not just technology. Jpop today is a shadow of its former self. > China, they're innovating in ways Japan can only dream of without the fanfare or buzzwords. The same thing that happened to Japan is happening to China now - end of demographic dividend, popping of asset bubble, ... China is likely to stagnate the next few decades. The only difference is Japan got rich before things went south while China is still climbing that ladder. > Re: The US etc., everywhere has issues but Europe/The US does not have the observable stagnation that can be witnessed in Japan. Again, it probably comes down to demographics. The West is willing to import people to keep their population rising - possibly at the expense of social stability. The Japanese decided to "go down with the ship" and just deal with the fallout as it comes. China ... doesn't really have much a choice but to go down with the ship. Who the heck is going to immigrate there? |