Term Paper Writing Help | College Essay | Resume | Research Paper Writing | Thesis | Dissertation Writing

Excerpt from :

Cause and Effect of Japan s economic crisis in the 90s their governments economic structure and response to the crisis then and now Also of note will be any similarities between Japans past crisis and the current situation in the United States

......
Yet, Japans economy did not collapse entirely. Demand was soft, but GDP did not fall below levels at the peak of the real estate bubble (Kuhn, 2008) on account of government spending and the export market. Domestic demand, however, had softened, which was a sufficient blow to the economy. Massive government spending kept the unemployment rate below 6% throughout the crisis, and this softened the decline in domestic demand (Burkett et al., 2003)

As the crisis dragged onwards, it became apparent that significant economic restructuring was necessary to spur a renewal of growth. The old keiretsu system with its strong government backing was no longer able to protect the economy. Employment for life and other inefficiencies valued by the Japanese public were becoming threatened. This had the effect of shocking consumer confidence, but the corporate world became stuck, knowing that the systems would need to be changed but seemingly unwilling to make those changes. The banking system would need to be purged of its bad debts. That the economic crisis in Japan lasted so long was a result of resistance to making the necessary structural changes in order to modernize the economy. These structures, designed to bring Japan strong