Current Events: Japanese Economy Shifting Towards American Values

Historically, Japan has been a nation that attached too much value to its past and traditions. This caused the island nation to be at the mercy of its more advanced trading partners for hundreds of years until they finally dispensed with their archaic policy of isolationism and maintaining cultural purity and industrialized. Now, one of the last remnants of Japan's feudal past is being swept away in the shape of economic reforms. Previously, the Japanese government had its hand in much of the country's industries, especially banking. This expansive and inefficient bureaucratic intrusion has hindered business and caused the national debt to spiral out of control. Currently the governmental debt of Japan is estimated at 180% of their GDP, by for the highest out of any developed economy. This will lead to an increase in the already high tax rate just to keep the debt at the same level it is now. However, Japan is taking steps to reverse the damage. Deregulation and economic reforms that should bring their struggling economy closer to a free market model, coupled with the dismantling of the governmental banking monopoly has caused corporations to post record profits, and has stimulated economic growth. Unfortunately, these improvements may be short lived, as the Japanese will also have to deal with their aging population and the rapidly shrinking labor pool.