Nov 17 2008
Japan In Recession
It is no surprise that the economic problems in the U.S. are spreading around the world, but it is something to note when one of the largest economies in the world, and one that was built uniquely and strongly, plunges into recession. Japan can now join Germany, the European Union, and Hong Kong in a growing list of nations that are admitting this sad economic defeat. What is the reason for Japan’s problem? The United States. Americans are spending less on Japanese goods, which include automobiles. This hurts Japanese exports. Japan relies on these exports heavily. Japan needs a market to sell the goods, and since their own people are not going to rush for the goods, the U.S. must work to recover for the good of the world, or Japan can try to move on to other markets, but odds are, if the U.S. economy is in trouble, it will not be easy to find another market to sell your goods at a competitive price.
Not that Obama needed more pressure to help the economy, but more and more top nations are now looking for the U.S. to act. Obama will inherit a real crisis on his hands, and not one you can just blame President Bush for. Consumers and financial institutions are the ones who did the groundwork. Once one domino falls, it causes a chain that will be hard to stop now. Japan will only recover, as well as the entire world, with whatever plan the leaders of the U.S. can give.
