Episode 21 - The Crash

In this episode of the History of Japan podcast, the speaker discusses the economic crash that occurred in Japan in the early 1990s and its lasting effects. The episode traces the roots of the crash back to the end of the Bretton Woods system in 1971 and the Plaza Accords in 1985, which led to the Bank of Japan lowering interest rates to stimulate the economy. This resulted in a real estate bubble that eventually burst, causing widespread economic and social problems, including a lost generation, declining birth rates, and issues within the school system. The speaker draws parallels between Japan's experience and the United States' economic challenges, suggesting that Japan's struggles serve as a warning. The episode concludes with a reflection on Japan's potential for recovery, referencing a Taoist parable about the unpredictability of fortune.