It's hard to feel sympathy for Japanese people when they themselves are responsible for the decline of their country. They chose to all become poor instead of temporary hardship to few groups.
Based on all the research, the core of problem with Japan is the lifetime employment system which reduces labour mobility and increases cost of failures. It worked well when Japan was growing but has become the core issue after stagnation.
But are Japanese people ready to go away from it ? There is a reason most politician don't talk about it because Japanese people like it too much. This has also led to increase in temp workers which again causes problem.
So, basically to save few people from layoff, all Japanese people are willing to suffer.
Also, LDP has been decently competent and populist by giving subsidies and not proposing any reforms that upset people. But they have been overly careful and consensus based.
So, I like the Sanae Takaichi is hot headed and much more authoritative. She is either going to break Japan's back or will chart Japan towards growth path if she stays. Both are good because if she fails, it will lead to crises which provides a good opportunity for reforms. Japan now don't have the financial buffer they had in 1990.
Also, I also like her focus on public-private initiative and industrial policy. Thing is if you are going to place so much burden on Japanese companies ( by lifetime employment) , you need to help them thru other ways to compensate for that so. You need to provide them a safety net, so that they can take risk.
I would be happy if you have any thought on what I said. Thank you.
- Japan's lifetime employment system worked wonders while growth was constant, employees mastered niche skills for long-term security, and senior mentorship thrived on steady new hires. But when the economy stuttered, companies couldn't shed excess bloat and cut hiring instead, creating a vicious cycle of wildly inefficient, top-heavy orgs. I think it's getting better though, but perhaps not fast enough...
- LDP has the impossible task of fixing an economy that exponentially becomes less efficient and more expensive to maintain due to pensions and retirees. I think it's easy to choose the populist route when you realize that structural reform would be incredibly tough for the general population. They'll probably kick the can down the road and give some minor handouts so people don't starve along the way🥲
What a great article, sir. Thanks for the breakdown. One thing I´ve noticed is the government expressing the desire to continue attracting ever more tourists while at the same time expressing its strong stand on immigration. Interesting right? It´s politics.
Very well written
Hi. Nice post.
It's hard to feel sympathy for Japanese people when they themselves are responsible for the decline of their country. They chose to all become poor instead of temporary hardship to few groups.
Based on all the research, the core of problem with Japan is the lifetime employment system which reduces labour mobility and increases cost of failures. It worked well when Japan was growing but has become the core issue after stagnation.
But are Japanese people ready to go away from it ? There is a reason most politician don't talk about it because Japanese people like it too much. This has also led to increase in temp workers which again causes problem.
So, basically to save few people from layoff, all Japanese people are willing to suffer.
Also, LDP has been decently competent and populist by giving subsidies and not proposing any reforms that upset people. But they have been overly careful and consensus based.
So, I like the Sanae Takaichi is hot headed and much more authoritative. She is either going to break Japan's back or will chart Japan towards growth path if she stays. Both are good because if she fails, it will lead to crises which provides a good opportunity for reforms. Japan now don't have the financial buffer they had in 1990.
Also, I also like her focus on public-private initiative and industrial policy. Thing is if you are going to place so much burden on Japanese companies ( by lifetime employment) , you need to help them thru other ways to compensate for that so. You need to provide them a safety net, so that they can take risk.
I would be happy if you have any thought on what I said. Thank you.
Some unfiltered thoughts:
- Japan's lifetime employment system worked wonders while growth was constant, employees mastered niche skills for long-term security, and senior mentorship thrived on steady new hires. But when the economy stuttered, companies couldn't shed excess bloat and cut hiring instead, creating a vicious cycle of wildly inefficient, top-heavy orgs. I think it's getting better though, but perhaps not fast enough...
- LDP has the impossible task of fixing an economy that exponentially becomes less efficient and more expensive to maintain due to pensions and retirees. I think it's easy to choose the populist route when you realize that structural reform would be incredibly tough for the general population. They'll probably kick the can down the road and give some minor handouts so people don't starve along the way🥲
What a great article, sir. Thanks for the breakdown. One thing I´ve noticed is the government expressing the desire to continue attracting ever more tourists while at the same time expressing its strong stand on immigration. Interesting right? It´s politics.