Japans Economic System?
The simple answer is that Japan is a capitalistic nation, like the US. However, because of cultural differences, the resulting economic activity appears far different than ours (the US). After WWII the US privatized most of the Government run institutions. This significantly lowered the cost of running their government. On top of this there were great restrictions of Japan’s rebuilding their military – again an incredible boon for the economy. And there are other factors. Time Magazine wrote: The Japanese variant of capitalism cannot be readily or precisely copied, except perhaps by a few Asian countries, because it is rooted in a homogeneous, hierarchical society with a not so distant feudal past. Changes are slowly taking place, but disciplined workers still display an almost mystical loyalty to their companies, and paternalistic employers reciprocate by guaranteeing job security. Leaders of business, banking and government are members of a unitary elite, and they have a snug relatio
