Japan: No Longer a Miracle

By Barry Ritholtz - February 18th, 2009, 10:33AM

Japan, the postwar economic miracle, is on a fundamental slide. Fifteen years ago, it ranked fourth in the world in terms of gross domestic product per person, but now it has slipped to 20th.

Source:
For Japan, a Long, Slow Slide
Blaine Harden
Washington Post, February 3, 2008; Page A17

http://www.washingtonpost.com/wp-dyn/content/article/2008/02/02/AR2008020200913.html

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Comments

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data, ability to repeat discredited memes, and lack of respect for scientific knowledge. Also, be sure to create straw men and argue against things I have neither said nor even implied. Any irrelevancies you can mention will also be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

7 Responses to “Japan: No Longer a Miracle”

leftback Says:
February 18th, 2009 at 1:08 pm
What does Luxembourg produce? Safe deposit boxes? Cuckoo clocks? Madoff’s brokerage statements??
I call BS.
bdg123 Says:
February 18th, 2009 at 2:39 pm
I believe Madoff’s brokerage statement is about right. In fact, this list is rather unusual. Qatar? Uh, yeah right. Ireland? The worst economy in the EU that has relied on foreign capital for their mini miracle that has ended. Iceland? Financial Ponzi scheme. Norway? Oil bubble.

Not to criticize the entire list but I’ve been to many of these countries and Japan is still comparatively a Godzilla economy. I think anyone who has been to Japan realizes the incredible might of its economy. Japan, Germany, France and the US rule the world regardless of embracing country-specific ideals. The reality is Japan has been deflating and we will see the same thing elsewhere take effect in most of these 2007 countries that have very unsustainable dynamics. None of those countries on that list are anywhere near competitive to Japan except the US.
thecreativedestructionist Says:
February 18th, 2009 at 4:30 pm
I view the US now as Japan in 1991. Bursting housing and equity bubbles with all of the same mistakes, an insolvent banking system, zero interest rates, massive infrastructure spending, Zombie companies etc… same movie , different year.

Also Iceland is insolvent and Ireland is well on its way, as it was built on debt and a housing bubble that is utterly imploding. Qatar and Norway are on the list due to energy.
Jojo99 Says:
February 18th, 2009 at 6:38 pm
The question that needs to be considered is what exactly is GDP? Is it measured the same in all countries? How accurate is the data from different countries?

See:
http://www.shadowstats.com/article/57

http://www.chrismartenson.com/crashcourse/chapter-16-fuzzy-numbers
jlundell Says:
February 18th, 2009 at 8:12 pm
Why is the 2007 list out of order?
sunbin Says:
February 18th, 2009 at 8:42 pm
1US$=115-120Yen in 2007

it is under 90 now

so Japan GDP in 2008 is about 30%more, which would put it back on top 10 again.
on the other hand EUR has fallen by some 15%, and the financial meltdown drag down those of Lux/Swz more.
sunbin Says:
February 18th, 2009 at 8:44 pm
p.s. one example: ICELAND was #5 in 2007!