Free Republic

After more than twenty years of economic troubles, Japan now appears to be entering a terminal phase. They are running out of options as they approach a total economic melt-down. Since their recession began with the 1990 collapse of the Nikkei stock market, the Japanese government has tried to stimulate their economy with more government spending. Unfortunately, all they have to show for it is massive sovereign debt. The promised economic recovery never happened. They have become Exhibit A in the case against socialism, proving what free market economists have said all along, government spending cannot drive economic growth. That...

Political and business attention in the U.S. is focused on China's rapid and spectacular emergence as a global economic player. But the unfolding political drama surrounding Japanese Prime Minister Junichiro Koizumi's attempt to reform his country's antiquated financial system also contains some important lessons for the global economy.It's easy to see why interest in Japan has been eclipsed by that in China. With its economy growing by about 9% over the past year, China is galloping relative to Japan's slower growth of less than 2.5%. And many economists believe China's annual growth in gross domestic product could be 8% for...