Obama is right to cite the example of Japan. That nation's collapsed housing and stock markets in the 1990s are very relevant to today's recession. Between 1992 and 1999, Japan passed eight stimulus packages, totaling roughly $840 billion in today's dollars. During that time, the debt-to-Gross Domestic Product (GDP) ratio skyrocketed, the country was rocked by massive corruption scandals, and the economy never recovered. All Japan had to show for it was a mountain of debt and some public works projects that look suspiciously like bridges to nowhere.
Sunday, February 15, 2009
$840 Billion Didn't Rescue Japan
Veronique de Rugy: