The dangers of high housing prices, a lesson for Japan.
High housing prices are a social problem that affects everyone's quality of life and well-being.
What are the consequences of high housing prices if they are not effectively controlled?
We can find the answer in the history of our neighbor, Japan.
In the last century, Japan experienced an unprecedented housing bubble, which led to the loss of the hard-earned money of the Japanese people.
Many Japanese people could not bear such a blow and chose to commit suicide to end their lives.
This disaster has made the Japanese deeply aware of the dangers of high housing prices.
The Rise of Japan.
After the end of World War II, Japan became a vassal of the United States.
The United States had intended to turn Japan into an agrarian country and weaken its industrial power.
However, the outbreak of the Korean War changed the mind of the United States.
In order to support the Korean battlefield, the United States began to vigorously support Japan's military industry, so that it could quickly recover and develop.
Japan after World War II).
This is not the first time that Japan has made a fortune from war, and later in the Vietnam War, Japan also made huge profits as a logistics base for the US military.
South Korea, by contrast, was not so lucky.
Throughout the Cold War, South Korea, as the front line of the confrontation between the United States and the Soviet Union, endured tremendous pressure and sacrifice.
Stability is the prerequisite for economic development.
Japan did not waste this opportunity and maintained a high rate of economic growth in the decades after the war.
In 1968, Japan surpassed Germany to become the world's second-largest economy after the United States.
With a strong manufacturing industry, Japan's home appliances and automobiles have captured the global market.
In the high-tech field, Japan's semiconductor industry also accounts for half of the world's market.
The Japanese ate the lion's share, and the Americans suffered.
The United States was not what it is now, and the working class was the main force in the elections.
As you can imagine, the Americans at that time were very disgusted with the Japanese, believing that the Japanese had taken away their jobs.
History is always strikingly similar, and half a century later, Japan's place was taken by China.
Americans smashed Japanese cars)
Just as American politicians often perform anti-China performances in public today, American politicians at that time also often put on anti-Japanese performances in public.
The difference is that the protagonists at that time were still Republicans.
Looking back at that period of history, we can see that many American politicians smashed their Japanese cars, Japanese televisions, and so on in public.
When this sentiment reached its peak and the United States was unable to defeat Japan in normal business competition, they began to play a game of destruction.
In order to solve the widening ** deficit, on September 22, 1985, the United States forced Britain, France, and West Germany, including Japan, to adjust their monetary policies and let their national currencies appreciate against the US dollar.
This is known as the Plaza Accord, which led to a sharp appreciation of the yen against the dollar.
The sharp fluctuations in the exchange rate have directly affected Japan's manufacturing industry.
Japanese products have lost their best advantage and have been gradually replaced in the global market by American products that have benefited from the depreciation of the dollar.
So, in the face of US suppression, what did Japan do?
Why did Japan's economy collapse?
Japan is a nation that likes to gamble on national fortunes, which is also related to its geographical environment.
Ninety years ago, Japan gambled everything in order to realize its imperial dream.
But they underestimated the resistance of the Chinese and ultimately failed.
After this war, it means that Japan can only play a supporting role in the international arena in the future.
Naturally, it is difficult for those imperialist fanatics in Japan to accept such an outcome.
It was only later, with the rapid development of Japan's economy, that these people saw hope of returning to the top of the world.
How did Japan's economy take a leap forward after the war?
First of all, the most important thing is that in terms of culture, Japan, like South Korea, is a secondary civilization derived from the Chinese cultural circle.
Chinese Cultural Circle).
Benefiting from the influence of Chinese culture, whether it is Japan, South Korea, North Korea, or even North Vietnam, it has a strong internal cohesion.
What this brings is an efficient ability to organize and mobilize, which naturally carries a huge advantage in the competition between countries.
This is why, after World War II, only a few countries in East Asia industrialized.
Even North Korea, which faces a total blockade, can become a problem for the United States in a mountainous area.
Since the Tang Dynasty more than a thousand years ago, Japan has been the most devout student of the ** dynasty.
Until the Americans blasted open the door to Japan and let Japan see the dawn of a new world.
The last.
Naturally, Japan is well aware of the impact of currency appreciation.
But since the end of World War II, Japan has become a de facto "colony" of the United States, and naturally there is no way to resist politically.
Since you can't resist, you can only find a way economically.
The five countries signed the Plaza Accord).
After thinking about it, the Japanese thought of a stupid trick.
In the view of Japan at that time, the first thing was to save the manufacturing industry, at least not to let the industry collapse.
So, how to do it?
Quite simply, increase the liquidity of the market.
Therefore, the Bank of Japan immediately lowered the lending rate from 5 percent all the way to 2.5 percent, and by the way, it also lowered the bank's deposit interest rate at the same time.