Stimulus was not large enough.

Jarod

Jarod

Well-known member
Contributor
It was something like 8% of GDP....

In the 80's Japan had to do a stimulus that was something like 80% of GDP.
 
http://www.japan-guide.com/e/e644.html

The Japanese economy is one of the strongest in the world. Only the USA has a higher GNP. The Japanese currency is the Yen.
Exports: Japan's main export goods are cars, electronic devices and computers. Most important single trade partner is the USA which imports more than one quarter of all Japanese exports. Other major export countries are Taiwan, Hong Kong, South Korea, China and Singapore.

Imports: Japan has a large surplus in its export/import balance. The most important import goods are raw materials such as oil, foodstuffs, and wood. Major suppliers are the USA, China, Indonesia, South Korea, and Australia.

Industries: Manufacturing, construction, distribution, real estate, services, and communication are Japan's major industries today. Agriculture makes up only about 2% of the GNP. Most important agricultural product is rice. Resources of raw materials are very limited and the mining industry rather small.


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Its going to take a couple years of stimulus to really turn it arround. We are still sliding down the hole and the slide has to be halted before we can begin to climb out.

This first round is an attempt to get the brakes to respond.
 
You gotta pump those breaks, but with the Republicans trying to hit the accelrator all the time, its kinda hard!
 
Too bad the breaks were not applied by Bush before he left, instead he gave away the first truanch of effort to the CEOs who were the assholes hwo made this mess.

I really think the Bush team purposely raided this country for money. I truely think that was their goal.
 
Jarod said:
http://www.japan-guide.com/e/e644.html

The Japanese economy is one of the strongest in the world. Only the USA has a higher GNP. The Japanese currency is the Yen.
Exports: Japan's main export goods are cars, electronic devices and computers. Most important single trade partner is the USA which imports more than one quarter of all Japanese exports. Other major export countries are Taiwan, Hong Kong, South Korea, China and Singapore.

Imports: Japan has a large surplus in its export/import balance. The most important import goods are raw materials such as oil, foodstuffs, and wood. Major suppliers are the USA, China, Indonesia, South Korea, and Australia.

Industries: Manufacturing, construction, distribution, real estate, services, and communication are Japan's major industries today. Agriculture makes up only about 2% of the GNP. Most important agricultural product is rice. Resources of raw materials are very limited and the mining industry rather small.


Economy Related Pages

Japanese Yen
Companies
Banks
Visiting Cards Cost of Living
Doing Business in Japan
International Relations
Politics
Click to expand...

Wow a site dedicated to marketing Japanese business as your source. Here's the real news about Japan's crappy economy.
Unemployment hit a three-year high, household spending slid and manufacturers saw no quick turnaround in the outlook for industry -- the main driver of the world's second-biggest economy -- as inventories hit record highs despite factory closures and lay-offs to cut production.

The subsiding inflation and worsening economic conditions are stoking deflation worries, as in other major economies, which may prompt more central bank steps to support the staggering economy and unfreeze credit markets that are starving key companies of cash.

Economists said fourth-quarter gross domestic product (GDP) figures, due out in February, would likely show Japan's economy shrinking at an annual rate of about 10% -- the sharpest fall since the first oil crisis in 1974 and bigger than any during the Japanese banking crisis 10 years ago.

Tatsushi Shikano, senior economist at Mitsubishi UFJ Securities, said early 2009 also looked bleak.

"As output adjustments continue, weakness in the overall economy will persist in January to March, and the degree of worsening depends much on how exports turn out," he said.

"It is already a consensus view that core consumer inflation will turn negative soon, but we must watch if a worsening of the economy pushes Japan into a deflationary spiral even though the Bank of Japan sees no signs of that happening right now."

Japan's industrial production fell a record 9,6% in December, after an 8,5% drop in November, as companies have been forced to cut output as export demand for their cars, electronics and machinery evaporates.

The sharp global slowdown has prompted Japanese chip makers to seek mergers to survive, while big car makers such as Honda Motor and Toyota Motor slash earnings forecasts and shutter plants.
Click to expand...
http://www.mg.co.za/article/2009-01-30-record-tumble-in-japan-output-signals-dismal-gdp
 
Japan's market is like 80% lower than when the crisis started 20yrs ago.
Too much gov is not always good.
 
evince said:
Too bad the breaks were not applied by Bush before he left, instead he gave away the first truanch of effort to the CEOs who were the assholes hwo made this mess.

I really think the Bush team purposely raided this country for money. I truely think that was their goal.
Click to expand...

Empirical evidence says that getting money is the Republicans primary goal.
 
The economy of Japan is the second largest economy in the world,[1] after the United States, at around US$4.5 trillion in terms of nominal GDP[1] and third after the United States and China when adjusted for purchasing power parity.[2] The workers of Japan rank 18th in the world in GDP per hour worked as of 2006.[3]

Japan's economy is highly efficient, highly diversified, and very competitive, being ranked 19th among 111 countries on productivity. Japan has a well-educated work force and high levels of savings and investment rates.

For three decades, Japan's overall real economic growth had been spectacular: a 10% average in the 1960s, a 5% average in the 1970s, and a 4% average in the 1980s.[4]
Sliding stock and real estate prices marked the end of the "Japanese asset price bubble" of the late 1980s, and ushered in a decade of stagnant economic growth. These problems may have been exacerbated by domestic policies intended to wring speculative excesses from the stock and real estate markets. Real GDP in Japan grew at an average of roughly 1.5% yearly between 1991-1999, compared to growth in the 1980s of about 4% per year. Growth in Japan throughout the 1990s was slower than growth in other major industrial nations, and the same as in France and Germany. Government efforts to revive economic growth have met with little success and were further hampered in 2000 to 2001 by the slowing of the global economy.[5] However, GDP per worker has increased steadily even through the nineties, growing at 2.0% per year in 2003 and 2004, and 2.8 percent in 2005. Unlike previous recovery trends, domestic consumption has been the dominant factor in leading the growth. As predicted, the economic recovery continued in 2006 and 2007.

[ame]http://en.wikipedia.org/wiki/Economy_of_Japan[/ame]
 
The stimulus was not large enough and they know it .. evidenced by the fact they have already said they'll be back for more.

Americans can only handle truth in portions.
 
Jarod said:
...

Japan's economy is highly efficient, highly diversified, and very competitive, being ranked 19th among 111 countries on productivity. Japan has a well-educated work force and high levels of savings and investment rates.....
Click to expand...

And now, the relevant argument:

Here’s the critique in a nutshell: Japan in the early 1990s, like the U.S. today, saw a real-estate bubble burst, spawning a banking and credit crisis that drove the whole economy down, hard. The Japanese then tried stimulating the economy with giant doses of government spending, which didn’t pep things up — but did bring on deficits that required tax increases later, dragging out Japan’s problems for years.
Click to expand...
http://blogs.wsj.com/capitaljournal...ans-stimulus-mistakes-answer-not-necessarily/
 
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