The Japanese Economy

The Japanese Nikkei Stock Average of 225 companies is about one quarter of its value on 12/29/1989 and is still dawdling these days.

We know of Hitachi and Nissin Foods and their corporate growth but the Japanese economy has been flat and practically dormant for the past twenty years. This has been the case despite huge Japanese government spending. In fact, Japan public debt is now about 200% of GDP.

Unfortunately, it does not appear at this time, their economy will recover anytime soon.

The problem for the U.S. is that the Obama administration has been on a wild tear to “stimulate” the American economy, much the same way the Japanese did theirs two decades ago. That is, spend their way to prosperity. Which they have failed to do.

That ought to be a lesson for the Obama administration. But it obviously isn’t.