A Faltering Japanese Economy Frustrates Global Recovery

Abstract

Abstract : Unfortunately, in the post-cold war period, close U.S.-Japanese security ties have been jeopardized by growing economic strains. In the past, defense burdensharing has frequently been at issue, but more recently, the perception of Japan as an unfair trading partner has become the main focus of attention. As a result, the image of Japan as some kind of export monster devouring U.S. and Western economic interests has made a bad situation worse, and could lead to a breakdown in the all important U.S.-Japanese security relationship. The author of this study contends that many Americans are being too quick in calling for an escalation in the economic competition with Japan to some form of economic warfare. They have a mistaken view of the Japanese economy. Once Americans and their leaders begin to understand that the Japanese economy faces problems of its own, they will be able to make informed decisions about how to steer the Japanese and Western economies in a mutually advantageous direction. And once Japanese and Western economic strategies are better synchronized, the prospects for global recovery and a peaceful new world order become much more promising.