Right and Wrong and Religion | Main | Obama Waffles on Afghanistan
February 16, 2009

Japanese Model is Not the Solution

President Obama has been claiming that the spendulus is necessary to keep the United States from an economic funk like the so-called "lost decade" experienced by Japan in the 1990s:

I think that what Ive said is what other economists have said across the political spectrum, which is that if you delay acting on an economy of this severity, then you potentially create a negative spiral that becomes much more difficult for us to get out of.

We saw this happen in Japan in the 1990s, where they did not act boldly and swiftly enough, and as a consequence they suffered what was called the lost decade, where essentially for the entire 90s, they did not see any significant economic growth.

Japan eventually spent $6.3 trillion building roads and bridges to nowhere on the exact same Keynesian theory that Obama says will save us. It is reasonable to ask then, how the Japanese are doing today:

That is log US real GDP (blue), log Japanese real GDP (red), and log Euro Area 15 real GDP (green), all rescaled to 0 in 2007Q4.

H/t Econbrowser for the graphic.


digg this
posted by Gabriel Malor at 02:45 PM

| Access Comments




Recent Comments
Milo Y.: "229 No, really. They're dusting off the ol' "the ..."

rickl: "[i]270 In any event, what happened to the nfl re ..."

FenelonSpoke: "You're going to ask your mother to tell Melania to ..."

avi: "anyone doubt that had Herr Muller lived during the ..."

DaveA[/i][/b][/u][/s]: "The losing team does HAVE to keep playing.Ask da B ..."

Spurwing Plover: "A pussy hat is a signs of mental unstable cond ..."

Max Power [/i] [/b]: "#TwoWeeks ..."

wth: "I think the people who have problems with Sessions ..."

eleven: "[i]Sessions has nothing to do with the IC investig ..."

rhomboid: "Semi-literate Thug, nice summary description. ..."

Calm Mentor: "I was willing to give him the benefit of the doubt ..."

Flawless Male Logic: "    Sessions has nothing to do with th ..."

Recent Entries
Search


Polls! Polls! Polls!
Frequently Asked Questions
The (Almost) Complete Paul Anka Integrity Kick
Top Top Tens
Greatest Hitjobs

The Ace of Spades HQ Sex-for-Money Skankathon
A D&D Guide to the Democratic Candidates
Margaret Cho: Just Not Funny
More Margaret Cho Abuse
Margaret Cho: Still Not Funny
Iraqi Prisoner Claims He Was Raped... By Woman
Wonkette Announces "Morning Zoo" Format
John Kerry's "Plan" Causes Surrender of Moqtada al-Sadr's Militia
World Muslim Leaders Apologize for Nick Berg's Beheading
Michael Moore Goes on Lunchtime Manhattan Death-Spree
Milestone: Oliver Willis Posts 400th "Fake News Article" Referencing Britney Spears
Liberal Economists Rue a "New Decade of Greed"
Artificial Insouciance: Maureen Dowd's Word Processor Revolts Against Her Numbing Imbecility
Intelligence Officials Eye Blogs for Tips
They Done Found Us Out, Cletus: Intrepid Internet Detective Figures Out Our Master Plan
Shock: Josh Marshall Almost Mentions Sarin Discovery in Iraq
Leather-Clad Biker Freaks Terrorize Australian Town
When Clinton Was President, Torture Was Cool
What Wonkette Means When She Explains What Tina Brown Means
Wonkette's Stand-Up Act
Wankette HQ Gay-Rumors Du Jour
Here's What's Bugging Me: Goose and Slider
My Own Micah Wright Style Confession of Dishonesty
Outraged "Conservatives" React to the FMA
An On-Line Impression of Dennis Miller Having Sex with a Kodiak Bear
The Story the Rightwing Media Refuses to Report!
Our Lunch with David "Glengarry Glen Ross" Mamet
The House of Love: Paul Krugman
A Michael Moore Mystery (TM)
The Dowd-O-Matic!
Liberal Consistency and Other Myths
Kepler's Laws of Liberal Media Bias
John Kerry-- The Splunge! Candidate
"Divisive" Politics & "Attacks on Patriotism" (very long)
The Donkey ("The Raven" parody)
Powered by
Movable Type 2.64