Not surprisingly, people are unhappy at this turn of events. They are unhappy with their companies, unhappy with government, and unhappy with the bureaucrats who were supposed to steer the economy clear of both the Doldrums and choppy seas. Traditional Japanese remedies for economic malaise have failed to ease the pain. Tax cuts and massive investments in public works have failed to rekindle growth. So now there is talk of drastic measures to reform the economy.
Demographic change adds a sense of urgency.
Within a few years, the numbers of people aged over 65 will start to soar. Growing numbers of elderly will need to be supported by a smaller work force. Only improved growth and productivity can prevent a sharp fall in living standards in grey-haired Japan. And so there's talk of massive de-regulation of many highly regulated industries. Of course de-regulation has been on the agenda before, but usually at the urging of foreign governments trying to pry open new markets.