What are the main reasons for the long term recession of the Japanese economy after entering the 90s

The main reason for Japan's economic recession is that they are adjusting, they have given up the relatively backward industries, and now they are mainly focusing on relatively high-end ones, so they have a period of economic recession, in fact, this is just an excess.

The reason for Japan's economic decline is very simple, because of the suppression of the United States, when the United States was about to transform Japan's rapid economic development, cut off its high-tech chip technology and dealt a serious blow, and detained their executives. By the time the executives of Japanese companies come out, everything has been successful, which can be said to be a serious blow to the high-tech transformation of Japanese companies, so the Japanese economy will collapse.

1. Excess production capacity of enterprises.

Large-scale capital investment was once the most important factor supporting Japan's rapid economic growth. At that time, however, the role of this factor was greatly weakened, and many industries in Japan had become severely overcapacity, forcing companies to cut capital investments. The surplus equipment and investment of Japanese enterprises have created a situation in which domestic supply exceeds demand, and enterprises have been hindered from readjusting their industrial structure.

2. Lack of stamina for scientific and technological innovation.

As a catch-up country, Japan's economic development has been achieved mainly by importing the scientific and technological achievements of European and American countries and digesting and innovating, while to a large extent it has neglected the research of basic science and high technology. Therefore, in the case of technological innovation, Japan does not have the backing to do so.

3. The adjustment of industrial structure lags behind.

Japan's post-war industrial structure, which caught up with Europe and the United States, is increasingly revealing its limitations. The main problem lies in the huge gap between production capacity and efficiency between relatively advantageous industries, relatively inferior industries and non-leading sectors, forming a "three-reconstruction" model in Japan's industrial structure. The input of the disadvantaged industries is lower than the output of the advantageous industries, resulting in a large deficit.

4. Mistakes in the adjustment of the economic system.

Japan is a leading market economy country, and in order to make up for the shortcomings of the market after the war, it implemented a wide range of national regulations. However, with the changes in the economic structure, the progress of science and technology, and the rapid development of informatization and globalization in the world, the foundation for establishing regulations has begun to weaken, and the negative role of the regulatory system has become increasingly apparent.

5. The financial crisis is serious, which weakens the ability to intervene in the economy.

Japan has always pursued a Case-like deficit fiscal policy, and the scale of fiscal expenditure has been expanding, and the fiscal balance has become increasingly unbalanced, and Japan has become the country with the most serious fiscal crisis among the developed countries. Since the collapse of the "bubble economy," Japan's fiscal situation has deteriorated due to the continuous introduction of large-scale economic measures.

A large amount of yen has been put into the market, causing chaos in the economic market, and the yen exchange rate has a straight exchange rate of the US dollar, resulting in a bubble in the market! The temporary rise of the yen led to a large number of overseas real estate purchases, and a large number of office buildings in New York and Los Angeles in the United States were owned by wealthy Japanese businessmen, but the subsequent bursting of the bubble caused the Japanese economy to fall into a quagmire from which it was difficult to extricate itself! Therefore, Japan's economy is now mainly supported by sticking to its own homeland!

In the late 80s, there was a very peculiar economic overheating phenomenon in the Japanese economy, that is, the ** and service charges of general goods were very stable, while the value of assets as a means of saving, especially the most representative **** and land**, had risen by leaps and bounds. The sudden increase in the size of this asset** out of the economic entity is much like the expansion of a bubble, so this economic phenomenon is called the "bubble economy".

Since the end of 1989, "cracks" have appeared. In the same year, the new BOJ governor set out to rectify the overheated economy and false prosperity within eight days of taking office, implementing the so-called "electric shock**". Within a few months, the discount rate was raised several times, and the commercial banks were put under pressure to stop lending to real estate companies and speculators.

As a result of this series of measures, Japan's "bubble economy" has been poked with a sharp needle and has begun to be deflated. Although the trigger is the tightening policy of the Japanese and ** banks, the root cause is undoubtedly the bubble economy itself. It is precisely because it is a "bubble" and "virtual" asset that is not based on the conditions of the real economy, so it will burst sooner or later.

Moreover, the formation and rapid expansion of the bubble economy was originally caused by the financial policy of financial liberalization as the main content.

The ripple effects of real estate bubbles, over-investment, unrecoverable loans, and bankruptcies of banking companies.

Basically, the economy was in recession due to the lack of interest rate adjustment when the economy was overheated and the economy cooled down, and at the same time, Japanese companies invested less and less in innovation and R&D, and competitors began to become stronger (emerging markets such as South Korea, Taiwan, and China began to emerge one after another), resulting in a lack of competitiveness of Japanese companies. The Plaza Hotel agreement was only one of the triggers, not the main factor.