Maxwell Tabarrok & Tomas Pueyo at Uncharted Territories:
For more than three decades, Japan has endured near complete economic stagnation. Since 2000, Japan’s total output has grown by only $200B.
That’s less additional output than Nigeria, Pakistan, and Chile, even though they all started from much lower bases, and only around a fifth of South Korea’s growth over the same period.
But despite severe economic stagnation, Japan is still a desirable place to live and work. The major costs of living, like housing, energy, and transportation are not particularly expensive compared to other highly-developed countries. Infrastructure in Japan is clean, functional, and regularly expanded. There is very little crime or disorder, and almost zero open drug use or homelessness. Compared to a peer country like Britain, whose economic stagnation over the past 30 years has been less severe, Japan seems to enjoy a higher quality of life.
What explains Japan’s lost decades? And how has the country still managed to maintain such a high quality of life?
More here.
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