Japan started off in a pit, or a "lost decade" in terms of the economy. Japan experienced four recessions that led to tons of loans which made investors and consumers lose all hope and confidence. The Japanese watched as The United States boomed with their economy and then they completely switched roles in terms of economic leadership. In the early 1980's Japan became the country with the highest economic leadership. Japanese Yen began to increase in value very quickly in the late 1980's passing up America's dollars very fast. From 1971 to the late 1980's the yen increased in value by two times. With all of this in mind, I do not agree that the United States should have been such a big influence on Japan's economy. The United States was the main leader of the economic powers and then Japan learned from the United States' ways and passed us up. With Japans' "yen" worth so much, everything in Japan went up in price where in the United States it did not. Keeping the dollar to its normal currency is very important and Japan should have followed the United States with that also so everything there would not have gone up in price so much. A main reason that Japan raised its currency was because the land price and the stock price drive each other and everything raises together which in conclusion raises the amount of loans the bank will acquire.
With Japan's first stock market crash, down went everything else in their plan to success so the government was let down with their plan to raise the money with everything because so many people lost their money from investing in these high priced loans and stocks. The United States' president at this time was President Reagan and he was using the system of a private economy and said that the greater the supply of goods and services was the road to economic growth, Reagan even had large tax cuts to create greater consumer spending of everything. This worked for a little while but then a recession hit and everything went downhill from there. Both Japan and the United States at this time were doing good for a while and then all of a sudden everything went to a sudden crash. With the United States influencing Japan's economy during this time, it shows that no one really knows what is going to work and what is not going to work so Japan should have just stayed on their own. Americans were all suffering even all the way down to farmers. Everyone was feigning for money and a way to dig their country out of the hole they dug themselves in to. The United States should have just kept to themselves like China does and not worry about any other countrys' economies or problems because the United States has enough problems on its own. Helping Japan's economy did nothing but bring the United States down a notch and Japan up past us, good job United States.
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