Japan Inc’s Independence from America
In 1982, a tragic incident in Detroit marked a turning point in America’s relationship with Japan. The fear of Japan surpassing the U.S. as the world’s economic superpower led to trade restrictions and protectionist measures. However, Japan’s recent embrace of pro-market reforms and shareholder-friendly policies has shifted the dynamics of this strategic partnership. This shift reflects the contradictions America faces in its global alliances and domestic economic policies. Japan’s transition in the past decade has been remarkable, with changes in economic trends and demographics.
Despite recent protectionist measures in America, Japan’s approach to economic policies makes more sense. The country’s response to depopulation and economic challenges is evident in the rising interest rates and stock market performance. Optimists believe that Japan’s lost decades are fading from view as the country continues to evolve.
2024-04-02 05:58:12
Original from www.economist.com