How Japan’s Abe Should Spend the Next Three Years

Japan’s economy is doing well. Unemployment is at multi-decade lows. Capital expenditure is up, as is return on equity. And wages are finally rising. For the longer-term, Japan also looks strong. Contrary to the popular myth that the country suffered multiple lost decades after the bursting of the bubble economy in about 1990, Japan has outperformed many other rich countries in terms of real gross domestic product per working age population since the year 2000:

It’s small wonder, therefore, that Prime Minister Shinzo Abe was recently chosen to continue to lead the Liberal Democratic Party for another three years. Because the LDP is usually in control of the Japanese government, barring only the occasional rare opposition victory, internal party elections can be more important than general elections. Nationwide, Abe’s approval ratings remain solid. There’s little question that his economic record is the reason he retains popularity.