One is the rapidly aging population. The low birth rate stems from a lack of day care for working women, the high cost of education and apartments in the cities that are too small for more than one child. The second problem is Japan's bureaucratic mentality. The myriad government regulations, which protect vested interests and stymie business creation, are just half the story. The private sector also needs to clear out the cobwebs.
Rules often take precedence over results at many old-line corporations here.
Japan's answers may be different than the tax revolts, corporate downsizing and entrepreneurial spirit that helped revitalize America's society. I'm no believer in imposing American values on Asian societies. But action, Japan-style, is badly needed. Japan has great wealth, unparalleled public safety, and high levels of technology and education. Since the financial bubble burst in 1990, however, it has failed to get back on stride.