Summary of Japan's Lessons for America's Budget Warriors

John H. Makin

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Japan's Lessons for America's Budget Warriors summary

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Recommendation

The US’s sluggish recovery from the 2008 financial crisis mirrors in many ways Japan’s post-1990 economy. However, their experiences are not identical. Thus, America’s ailment requires a different prescription. Economic consultant John H. Makin offers a cogent explanation to why the US shouldn’t swallow the same medicine as Japan. His text is highly detailed, but it provides a thought-provoking comparison with Japan and sheds light on many aspects of fiscal crises. getAbstract recommends this article to US policy makers seeking a model to emulate and to observers of the global economic recovery.

In this summary, you will learn

How America’s and Japan’s economic situations are similar,
How they differ, and
What lessons Japan’s experience can offer the US.

About the Author

John H. Makin is a former consultant to the US Treasury Department, the Congressional Budget Office and the International Monetary Fund.

Summary

America’s faltering post-2007 economy resembles Japan’s post-1990 economy: Both crises manifested from a bursting property bubble, and both nations have faced soaring public debt and deficits coupled with falling interest rates. However, Japan has “suffered more intensely” than the US, and its crisis...