Monday, September 21, 2009
Japan Gets A New Government
After 54 years of ruling Japan, the Liberal Democratic Party have been expelled and the Democratic Party of Japan have been ushered in. This articles discusses the many challenges the DPJ face and one of the more daunting challenges is their ability to pull Japan's economy out of deep recession. As mentioned in class, Japan fell into a recession in 1990 and has struggling since then to recuperate. Japan is renowned for its low unemployment, 1-2.5%, however, unemployment has reached a postwar record of 5.7% in July. Nonetheless, the new government is confident they will be able to pull Japan out of their current slump. It is just a matter of time whether we see if the Japanese economy will rebound with a new government leading it.
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2 comments:
Economists expected that Japanese economy would recover many years ago while it still was struggling with high unemployment, decreased spending, and rising poverty. It is hard to say whether a shock therapy or relatively moderate policies are required for the recovery. However, I think it is the right strategy to aggressively promote renewable-energy technologies since it will pay off in the long run.
Its hard to say whether Japan's economy will recover because the world as a whole is hurting in the current economic problem. However, I think that a change in the government party might help stimulate changes that the previous party couldn't seem to get out of.
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