US and Japan — I agree with JG that there are some meaningful differences between the US now and Japan 10 to 15 years ago. I’d also give two more differences:
a) income inequality is much less in Japan, and social welfare (healthcare) is stronger. Hence it’s easier for common folks to get by in a very slow economy. In fact, because of deflation, living standards didn’t go down much. Regardless of whether there is a recession and/or how severe it is, the lower half of the US population will be hurting – that’s my belief.
b) Workforce is much less mobile in Japan. That prolonged the downturn, BUT ALSO GAVE WORKERS LOTS OF TIME TO ADJUST (or not adjust for that matter). So the adjustment in the US will be quicker, and a lot more painful for those who’re impacted.
