It is important to note, however, that the starting point is very different. The idea of employees robbing those evil shareholders sounds good but has resulted in capital markets that effectively do not function. Tidying up that mess will not be simple and improving equity markets will go a long way.
Also, the structure of Japan is a function of US policy after WW2 to dismantle the zaibatsu. In every single other historical case that I am aware of the result of "employee-friendly" policies has resulted in the kind of permanent underclass that people fear, incorrectly, that AI will lead to (i.e. Germany). It is a known bad idea. Japan avoided this because all the wealthy people's assets were taken, this didn't happen in other countries (i.e. Germany) which led to significant financial instability/risk/inequality (Germany also has inequality within a completely stagnant economic system, which is different from inequality in a system where the composition of wealthy people is continually changing...Germany's billionaires are a combination of people who mysteriously got rich in the 1930s very quickly and people who have been rich since the 10th century).
Japan is interesting but it is a complete outlier. Even with their relatively good relative economic performance, they could be producing absolute-terms growth that is double or even quadruple where it is now. Comparing middling economies like Japan or Western Europe with countries growing the same rate and per-capita incomes that are double is a misunderstanding of potential. Average economic performance should be double the US consistently for multiple decades.
* Japan is ranked 23rd on the Human Development Index. The US is 17th.
* However, Japan is ranked 8th on the US News Quality of Life Index. The US is 30th.
Grass is greener on the other side.
https://data.worldhappiness.report/
https://en.wikipedia.org/wiki/List_of_countries_by_Human_Dev...
https://www.usnews.com/news/best-countries/best-countries-fo...
Compared to 20 years ago, Japanese people travel much less (millions fewer can afford to go overseas). Residential energy is 35% more expensive per kwh, compared to only 5% in the US. Food as a portion of monthly Japanese spend is 48% more expensive than it was 20 years ago. Despite millions of vacant dwellings, the home ownership rate is slipping. They earn less and they spend less.
Tokyo may seem quaint to American visitors clanking down their metal Chase travel credit card for more sushi, but for the typical Japanese, although they take it with grace and in stride, they have mired in stagnation and degrowth for a generation.
If you’ve ever worked for a Japanese corp under a Japanese boss, you would basically experience that your life is hell. As a westerner we are even subjected to far lesser rules and customs than a Japanese, and yet to me it still felt far more stifling and unbearable than any western company I worked for. Western companies have different failure modes, but intense unspoken micromanagement and stupid expectations was never one of them.
And I was a supposed “subject matter expert”, to be treated better than rank and file. That said, this clearly works for Japanese people, many of them are happy, I think they would be miserable under a western firms “do whatever the f you want as long as you get results” culture. To each their own.
Japan in some sense is stagnating if you compare it to a GOAT like US, but Japan of 1910s was also probably stagnating compared to US, in its own terms Japan is doing fine and their political situation is much more civil. So GG to them