Overview Economic History
Japan's economy faced one of its biggest recessions after the defeat in World War II. In the 1940s,
the U.S. support during the postwar helped Japan in rebuilding its free-enterprise economy.This connects to the economic concept of free-enterprise since Japan is a free-enterprise economy. This means that Japan's economy has limited restrictions on business related activities. The Japanese economy began to expand in the 1950s and showed consistent economic growth. By the 1970s, Japan was the most industrialized country in Asia. This period of time was one of the major expansions in Japan. This connects to the economic concept of business cycles (expansions). This period of time was one of Japan's major expansions because the economy has been growing steadily over a period of time. In 1998, Japan faced one of its most serious recessions where a negative growth rate of 1.9% had occured. This connects to the economic concept of business cycles(recessions). During this time, Japan faced one of its major recessions because there was quick and consistent decline in the real GDP. Japan's economy is the most technologically-advanced in Asia and the second most technologically-advanced in the world, behind the United States. This connects to the economic concept of changes in supply. Since Japan is one of the most technologically advanced in the world, this means that their technology reduces costs and increases supply.
the U.S. support during the postwar helped Japan in rebuilding its free-enterprise economy.This connects to the economic concept of free-enterprise since Japan is a free-enterprise economy. This means that Japan's economy has limited restrictions on business related activities. The Japanese economy began to expand in the 1950s and showed consistent economic growth. By the 1970s, Japan was the most industrialized country in Asia. This period of time was one of the major expansions in Japan. This connects to the economic concept of business cycles (expansions). This period of time was one of Japan's major expansions because the economy has been growing steadily over a period of time. In 1998, Japan faced one of its most serious recessions where a negative growth rate of 1.9% had occured. This connects to the economic concept of business cycles(recessions). During this time, Japan faced one of its major recessions because there was quick and consistent decline in the real GDP. Japan's economy is the most technologically-advanced in Asia and the second most technologically-advanced in the world, behind the United States. This connects to the economic concept of changes in supply. Since Japan is one of the most technologically advanced in the world, this means that their technology reduces costs and increases supply.
Gross Domestic Product (per capita)
As of 2015, Japan's GDP(per capita) is about $38,200. This means that each person in Japan produces $38,200 of goods and services that year, on average. As of 2015, the United State's GDP(per capita) is about $56,300, so the United States is more productive than Japan. Japan is ranked 42nd in the world and US is ranked 19th.
As seen from the line graph below, Japan's GDP per capita has been going up steadily over the years. This means that Japan has been experiencing economic growth and has been producing more valuable(in terms of price value not actual value) goods and services over time.
This also connects to the economic concept of real GDP, since this data of the US and Japan's real GDP per capital is an example of real GDP and shows what information can be gained from real GDP. Real GDP is used to see if a country is producing more goods or services without the changes in price affecting the GDP. From the graph you can see that over the years, the value of a person in Japan's goods and services have been consistently going up. This means that people in Japan have been working hard over the years for their price of their goods and services to be higher than it was before.
As seen from the line graph below, Japan's GDP per capita has been going up steadily over the years. This means that Japan has been experiencing economic growth and has been producing more valuable(in terms of price value not actual value) goods and services over time.
This also connects to the economic concept of real GDP, since this data of the US and Japan's real GDP per capital is an example of real GDP and shows what information can be gained from real GDP. Real GDP is used to see if a country is producing more goods or services without the changes in price affecting the GDP. From the graph you can see that over the years, the value of a person in Japan's goods and services have been consistently going up. This means that people in Japan have been working hard over the years for their price of their goods and services to be higher than it was before.
Unemployment Rate:
As of 2015, Japan's unemployment rate is about 3.3%. This means that on average, 3.3% of Japan's population was considered unemployed. As of 2015, the United State's unemployment rate is about 5.2%, so the United States has more people who are considered unemployed than in Japan.
This connects to the economic concept of unemployment and minimum wage. In 2015, Japan's unemployment rate was the lowest it has been in 20 years. Japan's unemployment rate has been going down steadily the past 5-6 years and this is because of the actions of Japan's prime minister Shinzo Abe. To reduce unemployment rate, Shinzo Abe increased the minimum wage, encouraged women to work by "easing the burden of child care and elder care" and encouraged employers to increase wages. By increasing minimum wage, the lowest amount of money you can pay a worker, more people were encouraged to work since wages were increasing. The United State's unemployment rate has also been going down steadily the past 5-6 years and this is because of increasing wages.
This connects to the economic concept of unemployment and minimum wage. In 2015, Japan's unemployment rate was the lowest it has been in 20 years. Japan's unemployment rate has been going down steadily the past 5-6 years and this is because of the actions of Japan's prime minister Shinzo Abe. To reduce unemployment rate, Shinzo Abe increased the minimum wage, encouraged women to work by "easing the burden of child care and elder care" and encouraged employers to increase wages. By increasing minimum wage, the lowest amount of money you can pay a worker, more people were encouraged to work since wages were increasing. The United State's unemployment rate has also been going down steadily the past 5-6 years and this is because of increasing wages.
Percentage of population under the poverty line
As of 2013, Japan's percentage of population under the poverty line is about 16.1%
The United State's percentage of population under the poverty line is about 15.8%
This means that Japan has more of its population under the poverty line than the United States, so Japan has a little bit more poverty than the United States.
This connects to the economic concepts of poverty rate and growth of low-skill service jobs. The United States and Japan, respectively, are the top two developed countries with the highest amount of children living in poverty. The poverty rate in Japan doesn't seem to be reducing anytime soon. The poverty rate has been going up over the years. In Japan, there are a lot more people under poverty, but aren't reported by the government. There is also a growth of low-skill service jobs in Japan. Those who are in poverty get jobs that don't require much skills but these jobs are low-paying and high-risk for health.
The United State's percentage of population under the poverty line is about 15.8%
This means that Japan has more of its population under the poverty line than the United States, so Japan has a little bit more poverty than the United States.
This connects to the economic concepts of poverty rate and growth of low-skill service jobs. The United States and Japan, respectively, are the top two developed countries with the highest amount of children living in poverty. The poverty rate in Japan doesn't seem to be reducing anytime soon. The poverty rate has been going up over the years. In Japan, there are a lot more people under poverty, but aren't reported by the government. There is also a growth of low-skill service jobs in Japan. Those who are in poverty get jobs that don't require much skills but these jobs are low-paying and high-risk for health.
This is a video on poverty and its consequences in Japan. Watch from the beginning to 3:55
Literacy rate and education expenditures
Japan's literacy rate is 96.7% (2015)
United States's literacy rate is about 99%
The US has a slightly higher literacy rate than Japan.
As of 2012, Japan's education expenditure was 3.8% of its GDP
As of 2011, United State's education expenditure was 5.2% of its GDP
The US spend more of their GDP on education than Japan, which is proabably why the US has a higher literacy rate.
Both countries literacy rates connect to the economic concept of factors of production(human capital) because if the vast majority of both countries populations are literate, there is a higher chance for a lot of people to gain the knowledge and skills needed through education and experience for them to work and increase human capital.
This also connects to the economic concept of GDP and economic growth. Since the US decided to put more of their GDP into education, the people in the US will be more educated and increase the GDP of the US. More people with better education will increase of the price of goods and services(GDP) since they are more educated about how to produce better goods and give better services. An increasing GDP leads to economic growth for the US.
United States's literacy rate is about 99%
The US has a slightly higher literacy rate than Japan.
As of 2012, Japan's education expenditure was 3.8% of its GDP
As of 2011, United State's education expenditure was 5.2% of its GDP
The US spend more of their GDP on education than Japan, which is proabably why the US has a higher literacy rate.
Both countries literacy rates connect to the economic concept of factors of production(human capital) because if the vast majority of both countries populations are literate, there is a higher chance for a lot of people to gain the knowledge and skills needed through education and experience for them to work and increase human capital.
This also connects to the economic concept of GDP and economic growth. Since the US decided to put more of their GDP into education, the people in the US will be more educated and increase the GDP of the US. More people with better education will increase of the price of goods and services(GDP) since they are more educated about how to produce better goods and give better services. An increasing GDP leads to economic growth for the US.
Economic Sectors
As of 2015, Japan's economic sectors are divided like this:
Agriculture: 1.2%
Industry: 26.6%
Services: 72.2%
As of 2015, the United State's economic sectors are divided like this:
Agriculture: 1.6%
Industry: 20.8%
Services: 77.6%
This shows that Japan and US have very close and similar percentages in their economic sectors. Both countries devide their economic sectors similarly. The US spends a little bit more than Japan on agriculture. Japan spends about 6% more than the US on industry. The US spends about 5% more than Japan on services.
Agriculture: 1.2%
Industry: 26.6%
Services: 72.2%
As of 2015, the United State's economic sectors are divided like this:
Agriculture: 1.6%
Industry: 20.8%
Services: 77.6%
This shows that Japan and US have very close and similar percentages in their economic sectors. Both countries devide their economic sectors similarly. The US spends a little bit more than Japan on agriculture. Japan spends about 6% more than the US on industry. The US spends about 5% more than Japan on services.
This relates to the economic concept of opportunity cost. Both countries have pretty similar economic sectors so this applies to both countries. Japan and the United State's opportunity cost was industry. Industry was the "most desirable alternative given up as a result of" the decision of choosing to put most of the total percentage into services.
This also relates to the economic concept of trade offs because this example of Japan choosing to put most of their total percentage into services is an example of trade offs. A trade off is "the act of giving up one benefit in order to gain another, greater benefit." Japan chose to give up putting more percentage into the other economic sectors, like industry and agriculture, to gain the benefit of majority of the percentage in services.
This also relates to the economic concept of trade offs because this example of Japan choosing to put most of their total percentage into services is an example of trade offs. A trade off is "the act of giving up one benefit in order to gain another, greater benefit." Japan chose to give up putting more percentage into the other economic sectors, like industry and agriculture, to gain the benefit of majority of the percentage in services.