I Think We’re Turning Japanese
We have learned the lessons of the Great Depression. We will not make the same mistakes again. We will make all new ones. Bigger, bolder, and swifter. Today’s NY Times story on Japanese efforts to stimulate their flagging economy declares this more recent history holds a lesson for us now. While Japan is hardly an ideal proxy for America in such a comparison, it’s probably a better one than America in the thirties. According to our new Treasury Secretary (and the spin of the Times story), who was there (which would be reassuring but for the fact that he was not only there for but oblviously instrumental in the Blunder Years of the credit and housing bubble), the lesson we should take from it is not this, the product of Japanese hindsight:
Among ordinary Japanese, the spending is widely disparaged for having turned the nation into a public-works-based welfare state and making regional economies dependent on Tokyo for jobs. Much of the blame has fallen on the Liberal Democratic Party, which has long used government spending to grease rural vote-buying machines that help keep the party in power.
“…vote-buying machines to help keep the party in power”; this hasn’t even happened in our case yet, and it already feels familiar. Nor should we take caution from this:
Dr. Ihori of the University of Tokyo did a survey of public works in the 1990s, concluding that the spending created almost no additional economic growth. Instead of spreading beneficial ripple effects across the economy, he found that the spending actually led to declines in business investment by driving out private investors. He also said job creation was too narrowly focused in the construction industry in rural areas to give much benefit to the overall economy.
But rather this just means go long, again and again. Like Brett Favre after four interceptions:
In a nutshell, Japan’s experience suggests that infrastructure spending, while a blunt instrument, can help revive a developed economy, say many economists and one very important American official: Treasury Secretary Timothy F. Geithner, who was a young financial attaché in Japan during the collapse and subsequent doldrums. One lesson Mr. Geithner has said he took away from that experience is that spending must come in quick, massive doses, and be continued until recovery takes firm root.
Lord help us.




The only thing I know for certain is that all the failures will be blamed on the free market and because of a lack of regulation.
Hey, if we have a black guy in the White House spending money we don’t have on projects we don’t need, maybe the laws of economics can be repealed. It didn’t work in Japan, but they didn’t have the almighty Obama at the helm steering the ship. Have faith, brother!
WE’RE TURNING JAPANESE
(Turning Japanese, The Vapors)
WilliamBanzai7
Sing along link: http://video.google.com/videosearch?q=turning+japanese&oe=utf-8&rls=org.mozilla:en-US:official&client=firefox-a&um=1&ie=UTF-8&ei=I1SnSeeUCMPDkAX694TJDQ&sa=X&oi=video_result_group&resnum=4&ct=title#
We’ve got a Century’s worth of horrendous economic news
You wrote “We love you” We wrote back “we too”
We sit here staring at Bloombergs, there’s nothing else to do
Oh it’s in color the DOW keeps going down
Our eyes are glazed And our deficit is flying in the clouds
Now we can kiss our own depressed Asset Bubble goodbye when there’s no one else around
We’ve got a picture, We’ve got your picture
Like a million years of stagnant economic hell
We want a doctor to take your picture
So we can look at your Lost Decade from inside as well
You’ve got us turning up and turning down
And turning in and turning ’round
We’re turning Japanese
I think We’re turning Japanese
I really think so
Turning Japanese
I think We’re turning Japanese
I really think so
We’re turning Japanese
I think We’re turning Japanese
I really think so
Turning Japanese
I think We’re turning Japanese
I really think so
No loans, no bonus, no jobs, no women
No fun, no sun, no good news, no wonder it’s dark
Everyone around us is in layoff danger
Investors all avoid us like a cyclone ranger
That’s why We’re turning Japanese
I think We’re turning Japanese
I really think so
Turning Japanese
I think We’re turning Japanese
I really think so
We’re turning Japanese
I think e’re turning Japanese
I really think so
Turning Japanese
I think We’re turning Japanese
I really think so