Greentext

Economics Explained has an interesting video on the topic. After WWII, Japan became the first country in Asia to undergo an industrial revolution and soon became the second largest economy after the US and was by many accounts set to match or even overtake the US. They then suffered an economic collapse due to unchecked growth and speculative markets and decided to never again speculate on the future and just stick to tried and true methods.

Since the 1990s, Japan's economy has barely changed while other nations have seen huge growth. You'd assume that would mean Japan is now far behind, but they aren't. They seem to have mastered keeping everything the same for decades without the normal decline that comes with it.

The US isn't innovating jack shit.

The US just created a massively polarized and unequal society so that when a country creates a new brilliant researcher or innovation, an American company can buy them out.

Basically, the insane poverty and lack of government services that the average American experiences gives them enough cash to buy up innovative people, companies, and competitors.

Same thing that happens everywhere. Low cost innovation gets expensive as companies grow and salaries rise, profit seekers move to exploit cheaper labor elsewhere.

I genuinely think using generative AIs to do your job for you should be grounds for immediate termination under just cause.

Machines have no agency and can never be held responsible for anything, thus should never be put under professional responsibility.

I can't wait for these models to colapse onto themselves.

If AI is the chief innovation in the US, then the US is massively fucked.

I'd much rather have a fancy shinkansen.

The Plaza Accord happened. Japan was also demonized in media and politics like China is now.

I guess Japan caught depression.

They have no groundbreaking AI software

Neither does the US

Sadly Japan may be a culture in decline.
Their culture is basically work yourself to the bone even more than the US. Young people study their ass off and get a job working long hours while still living at home because they still can't afford their own place. And you have stuff like if the subway is a minute late they hand out apology slips to workers so they don't get in trouble with their bosses for being 30 seconds late. Meanwhile there is a very strong 'defer to elder authority' note in their culture. And in many industries people are expected to work a 10-hour day and then go drinking with the bus until 2:00 a.m. only to be back at work the next day at 8:00 a.m.
The end result is young people have neither the time nor the money to have kids. So they don't.

Their population is literally aging and shrinking. They are facing a very serious problem in wondering who is going to take care of their elderly. Their birth to death ratio is 0.44, meaning that for every baby born in a year more than two people die. In a nation of about 125 million, the population is shrinking by just under a million every year. That's not good.

And while the Japanese people are highly educated and very capable, the 'defer to authority' culture prevents the sort of entrepreneurship you see in the US. An example of this, Japanese companies have a stamp called the hanko, when a paper memo is circulated around the office each employee stamps it with their personal hanko stamp to signify that they have read it. Many Japanese companies stayed in person during COVID simply because there was no digital equivalent to the hanko and managers refused to give it up.

If you wants an example, look at Toyota Motors. It's been obvious to everyone with eyes that electric vehicles are the future, and it has been obvious for probably 8 or 10 years. Every major automaker is investing in EV technology. Except Toyota, which up until recently was still betting the farm on hybrids and hydrogen. But that's because the good Mr Toyoda didn't like EVs, and unlike in an American company no one would dare challenge him on that.

It is really too bad. Japan is a wonderful place with an amazing culture and rich history. But if they are going to survive they need to make very serious changes to their society and they need to do it soon. That is going to involve dumping most of what currently qualifies as Japanese business culture, an instituting some real work-life balance laws with teeth. I don't know if they're going to do it.

Maybe Japan is so advanced it already moved past the overhyped generative “AI” and that’s why we haven’t heard anything about it

Japan is living in the year 2000, since 50 years.

japan and germans selling goods to america with no tax etc, they had no serious miltary concerns, invesment, america protects them, there is a invest sell cycle to them so they can produce more tech and goods until 80s and 90s america stops buying because it hurts their economy and japan and german passed them now they both in crisis. no major market to sell no spare money to inovation no more protection.