Japan's Economic History in the Last Forty Years

Historically, the Japanese population saved a lot and consumed little. During the period of rapid growth, the savings of these banks have promoted the development of private enterprises through bank loans. These funds are used to build and expand the industrial base of the country (Okimoto, 2004). On the contrary, after the asset bubble collapsed, the economy slowed down as consumers began to save too much (Kuepper, nd). One reason people save more money is the expectation of deflation that encourages people to wait for value to be added before people spend money.

In less than 40 years, the Japanese rebuilt everything from the ruins of the Second World War, becoming the world's second largest economic power. This is why people call Japanese history "economic miracle". The central government has greatly increased investment in private and public enterprises (Takada, 1999). The majority of the technology used during the war between many wartime companies has turned into peaceful economic development (Loukaki, 2014). Especially in the 1970s and 1980s, they produced most of the world's home appliances (Colombo, 2012). As a result, the economy grew more than imported due to the booming exports of electronics, automobiles and other products (Takada, 1999). As shown in Figure 1 below, the annual GDP growth rate during the "economic miracle" was about 10%, the highest peak in 1968 was 12.88%.

Examining the average annual growth rate of Japan from 1945 to 1950, it was clear that Japan achieved tremendous economic growth during this period. Japan's economic growth rate in 1945 was 7% (7%), and the corresponding figure in 1950 was found to exceed 14% (14%). Furthermore, the average growth rate in Japan from 1945 to 1950 is 13 (13%), which is three times (3%) of the US economic growth rate. ("Developed country statistics") Since this shows that Japan's growth between 1945 and 1950 is accelerating very rapidly, her economy is heavily dependent on the technology and knowledge of that period I will. Therefore, Japan's current economy can not be regarded as modern and technologically advanced.