Thursday, December 30, 2010

A Look Back at History: Japan's Economic Miracle

A Brief History on Japan’s Economy

Following their defeat in World War II, Japan began a rebuilding process at incredible speed. This economic burst was downright miraculous. Much of this boom was accredited to American investments, however it’s Japan’s government that truly deserves most of the credit. They created a new revolutionary system of economic intervention and international trade that skyrocketed their overall GDP. They had cooperation from all sectors within the country and were able to spread their business overseas.

For nearly three decades, Japan prospered as a country of thriving commerce. By 1968 they had become the world’s 2nd largest economy, behind the United States. However by the 1980s their economy simply began to grow too large, and by 1991 their economic success had finally came to an abrupt end. The 90s were a period of economic decline. Reform was needed to get things moving again. This decade was referred to as the Lost Decade in Japan’s Economy. However by 2003, the country was once again able to raise their GDP thanks to new economic policies.

Japan’s Economy Today

Today, Japan is the third largest economy in the world, behind the United States and China. They have especially thrived in the auto and electronics industries. Here in the states, I can’t help but notice when driving, that nearly half the cars I see are Japanese cars; Toyota, Honda, or Nissan. They have also stamped their legacy on many successful electronic brands such as Canon, Panasonic, and Sony. Their products have streamlined into practically every major national commerce. They have thus become one of the front-runners in global business.

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