Why Japan's Economy Is Awful

In the late 1980s, Japan stood as a global economic powerhouse—its economy thriving, real estate prices soaring, and a stock market that appeared unstoppable. The Nikkei reached unprecedented heights, Japanese firms led the world’s corporate rankings, and the nation’s GDP briefly overtook that of the United States. But by the 1990s, the bubble had burst, triggering a financial meltdown that erased trillions in wealth and ushered in Japan’s infamous "Lost Decades."

This video examines Japan’s remarkable economic ascent and the key mistakes that led to its dramatic downfall. From the Nikkei’s peak to the real estate crash, the impact of the Plaza Accord, and the lingering issue of zombie banks, we analyze the policy missteps, cultural barriers, and systemic weaknesses that trapped Japan in a cycle of deflation, demographic decline, and stagnant growth.

Why did Japan’s corporate traditions and immigration policies resist change? What warnings does Japan’s story hold for countries like Canada, Australia, and other advanced economies? Join us as we explore Japan’s economic rise, collapse, and the enduring consequences of its financial crisis.