Last week's scariest global headline didn't come from postelection Israel or a recession-prone United States but from an exhausted Japan. The story noted that the economy had contracted by an annualized rate of 2.4 percent during last year's third quarter. These numbers portray a Japan that is stuck in the mud and cannot seem to get out. Officials have tried most of the traditional solutions - public works projects, deficit spending, cuts in interest rates.
Nothing seems to work.
The Economist warned in its latest issue that Japan's plight is becoming dire. The government's approval rating has fallen to 14 percent. The Nikkei stock index is nearing its lowest levels since early 1986. Much of the problem seems to be psychological. Managers didn't become any dumber, certainly, nor did workers become any less productive - Japan is still a magnificently efficient and civilized country.