How Japan went from MIRACLE to DISASTER? | Economic Case study

How Japan went from MIRACLE to DISASTER? | Economic Case study

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VIDEO INTRODUCTION:
Ladies and gentlemen, Japan is facing a historic economic crisis. In 2025, 10,000 companies went bankrupt—not because they ran out of money, but because they ran out of people. These companies had paying customers and money in the bank, yet they shut down simply because there were no staff to run them. At the same time, Japan is closing 450 schools every year, as there are no children left to attend. This is a population and economic collapse unprecedented in modern history.

Yet, it wasn’t always like this. In the 1980s, Japan was growing at an extraordinary pace. The average income of a Japanese citizen skyrocketed from $500 in the 1960s to $25,000 in the 1980s. Despite being 26 times smaller than the United States in size, Japanese land was worth four times more than all the land in the U.S. The country grew so fast that it nearly rivaled the U.S. in GDP—while the United States had a GDP of $7.6 trillion, Japan’s GDP had surged to $5.5 trillion.

So how did a nation that grew so fast suddenly stagnate? Why is Japan struggling economically today? And most importantly, what lessons can India learn from Japan’s rise, stagnation, and the demographic and economic challenges it faces now?

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✅Study Materials:
https://www.nippon.com/en/japan-data/h02666/japan%E2%80%99s-corporate-bankruptcies-top-10-000-for-second-straight-year-in-2025.html

Japan’s Demographic Dilemma: The Challenge of a Declining Birth Rate

https://www.investopedia.com/terms/p/plaza-accord.asp#:~:text=The%20Plaza%20Accord%20was%20signed%20in%20New%20York%20City%20on%20Sept.%2022%2C%201985%2C%20and%20named%20after%20the%20hotel%20where%20it%20was%20signed%E2%80%94the%20Plaza%20Hotel.
https://www.aljazeera.com/gallery/2023/4/2/last-students-graduate-school-closures-spread-in-ageing-japan
https://www.cnbc.com/2014/04/29/what-a-difference-25-years-makes.html#:~:text=In%201989%2C%20when%20CNBC%20launched,over%20the%20last%2025%20years
https://researchbriefings.files.parliament.uk/documents/SN06629/SN06629.pdf

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