We Should Learn From Japan’s History

  •  February 9, 2009

In the early 1990′s Japan suffered a housing bubble pop not unlike the one America just went through. And Japan suffered a subsequent recession not unlike the one we’re going through right now. In response, in order to *ahem* stimulate their economy they engaged in a massive program of public works programs.
The result? Take a look:

image

Massive public spending didn’t do anything to stimulate Japan’s economy. It won’t do anything to stimulate America’s economy either.
In fact, I’d be willing to argue that a lot of the expansion into American markets by Japanese companies (opening manufacturing plants here, etc.) was driven by the ramped-up taxes and regulations Japan pushed on the private sector to pay for its massive “stimulus” spending.
Now Obama and the Democrats are getting ready to push that business right back off our shores.

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  • http://insanereindeer.blogspot.com/ Kenny

    The cure for a depression is a depression.

    It’s not possible to have a depression without massive government interference. Just like we wouldn’tbe in a recession if it weren’t for the BushBama “recovery plan”.

  • http://sayanythingblog.com/entry/america_is_back/#c397018 DINO

    Normally you conservatives bristle at comparisons of the US with other countries.

    So much for American ingenuity.

    How come you didn’t compare us to all the other countries who waged war in the Middle East and lost when you decided that we could nation-build there? How come you don’t compare other countries’ success with socialized medicine, coverage at a much less cost, with our refusal to follow through? How come you don’t compare the much lower rate of violent crime in other developed countries to ours and favor their gun control policies?

    Shall I go on?

  • axxkicker

    That’s why they no longer work. We reached the tipping point of the Laffer curve.

    judging by the laffer curve i’m looking at right now, the only thing that would decrease is the tax rate.

    i’d argue that we’re well beyond the tipping point of that curve, and that reduced taxes would increase government revenue.

  • axxkicker

    the difference being that they actually work.

  • moxyfire

    thanks for the link Rob

  • http://northerngleaner.blogspot.com/ Gene

    Moxyfire

    I have a post on depression that mirrors this on the readers side. You can read about how badly it went there

    I was in Japan and worked there during the depth of that depression. One difference they had that we do not have, A strong vibrant USA. Japan was in the tank but the USA was doing great and so was the rest of the world.

    It’s different this time. There is no resilient world economy to leverage off of.

    We are going to go thru some hard times. When gas was high, right here on this blog I reassured anyone that would listen that the cure for high prices was high prices and that they would come back to earth. They did.

    The cure for a depression is a depression. We must let the normal market forces, Atlas Shrugged if you will, do what they must do as painful as it will be without too much government screwing things up to allow the ship of state to right itself.

    OH and Dino, I have figured out a way to extinguish your comments from here on out. I no longer will have to look at them as of this post. You are an inane uninformed nincompoop and your opinion no longer is on my radar screen. I would tell you and others how I did it but, it would mean you would try to figure a way round it. You have not now, nor have you ever, had an opinion worth reading or considering.

    Buh Bye

  • moxyfire

    where is the link to the article?

  • axxkicker

    meant to add “when paired with reduced government spending”.

    that’s the part that seems to cause the issues.

  • http://vdvfamily.com/ Sphagnum

    That’s why they no longer work. We reached the tipping point of the Laffer curve.

    Are you telling me our tax rate is on the SMALL side of the Laffer curve?! LOL!!! That’s proven false by Bush’s tax cuts over the last decade…

  • http://www.willisms.com/ Zsa Zsa

    Massive public spending will only stimulate Socialism. Our so called Stimulus package is not short term like Obama said it would be. BUT what can we expect from one of the biggest Socialist in our country who is now our POTUS. Tax cuts are the answer. Not more pork programs!

  • http://sayanythingblog.com/entry/america_is_back/#c397018 DINO

    Like the republican solution of more tax cuts?

  • http://sayanythingblog.com/entry/america_is_back/#c397018 DINO

    that’s the part that seems to cause the issues.

    That’s why they no longer work. We reached the tipping point of the Laffer curve.

  • http://www.dartemis.net/blog/ sayanything-42

    Rob,

    Ah yes, the standard modus operandi of the left: “That didn’t work, we must try it again!”

  • http://sayanythingblog.com robport

    where is the link to the article?

    Added it. Sorry.

  • http://sayanythingblog.com robport

    Thanks for pointing out that it was missing.

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