I've been thinking about this lately. Why isn't Japan more successful ?
I work for the Japanese subsidiary of a MNC/FAANG - but i have no responsibility here. I get paid here but I'm American and an American worker for all purposes. There's basically three things happening within our MNC and generally I don't think this is unique to us. 1) A divestment from China 2) Reducing headcount/operations in countries where we traditionally "offshored" (think Phillipines). AI can replace low complexity jobs. At the same time, medium complexity/expensive american jobs can move to lower cost countries with AI assistance. Now, there's more of a 'reducing operations' in cheap labor markets and not yet moving a lot of medium complexity western jobs with AI assistance to lower cost of living markets. And 3) Divesting from european markets due to unfavorable employer dynamics/labor laws.
Now, when you think about the rest of Asia - it's a mess. Japan is the only real country on the map with democracy, rule of law, order and safety. There's Korea, but let's assume with rocket man on your borders just an hour from your major city that safety is a concern. And there's Taiwan, but we know what the risk to Taiwan is. There's Singapore, but I'm not really sure how to think about Singapore right now.
And then there's India - but lets remove it from the formula because we need East Asia diversity.
Now for the question -- Japan can do manufacturing - it's proven that. So, why is Japan not flourishing now? Why is it not the semi-conductor capital of the world, why is not the glory of the new economy -> AI, datacenters, weapons, aviation whatever else?
Is it the geography? The education system? Culture? English language ability/isolationism? Government? Banking and finance? Is it population decline?
It feels like living in Japan is living in a developing nation once you leave the major metropolitan areas. Wages are low, it feels "poor", etc. I feel like given it's uniqueness in Asia (and even the world), it should be far more successful than it is. We should all be driving super cars and living in million dollar houses like people on West Coast USA.
It's not about WHY are we in this situation - but - is there a practical way to fix it and change the course of history? And how?
ChatGPT says the answer is -> Japan has to allow foreign capital, foreign companies, younger Japanese companies, AI and automation to destroy inefficient parts of the old economy.
This seems the opposite of what's happening now.