Japan's current problems lie more in the wealth production process. After the bursting of Japan's economic bubble, in order to reduce the risk of instability, the Japanese government has long prioritized protecting traditional large enterprises, rarely encouraging competition and entrepreneurship. While stability has been maintained, innovation capacity has also been weakened. There are fewer and fewer fields like chemistry and precision instruments that still lead globally. Many once-famous Japanese brands are gradually disappearing from the international market, and we are seeing fewer and fewer of those awe-inspiring revolutionary innovative products from Japan's last century.

Another serious problem is the insufficient productivity caused by an aging population, especially the "Greater Tokyo Black Hole," which leaves most regions of Japan severely lacking in young labor (the Greater Tokyo area accounts for 3.5% of Japan's land area but absorbs 30% of its population, especially 40-45% of young people). This has forced Japan to introduce more foreign workers, also triggering the rise of right-wing xenophobia.

No matter how many new farces Takachiho creates in the future, the core problem she needs to solve remains productivity. For example, will the loose fiscal policy she hopes for be effective, and will it cause further price increases? Can the policy of replacing foreign labor with "AI robots + women + the elderly" be implemented? After all, the employment rates for Japanese women and the elderly are already high, and it's not easy to quickly catch up with China and the US in AI robots...

LongPort - 烧焦的大石头
烧焦的大石头

Why did Japanese stocks surge after Sanae Takaichi's election victory?

$Fidelity Fund - Japan Value Fund A-Acc-USD Hdg(LU0997587083.FD) $Pro Ultr MSCI JPron(EZJ.US) From last night until now in Japan, we may have witnessed a piece of history. Takaichi Sanae's big gamble paid off. The Liberal Democratic Party, to which Takaichi Sanae belongs, secured 316 seats in the House of Representatives election, the best result since the party's founding. Combined with its ally, the Japan Innovation Party, they obtained a total of 352 seats, exceeding two-thirds, which means Takaichi Sanae can continue to govern...

The copyright of this article belongs to the original author/organization.

The views expressed herein are solely those of the author and do not reflect the stance of the platform. The content is intended for investment reference purposes only and shall not be considered as investment advice. Please contact us if you have any questions or suggestions regarding the content services provided by the platform.