How America’s Strategy Destroyed Japan’s Economy: Crisis Explained Simply

Japan rose from the ashes of World War II to become the world’s 2nd largest economy by 1968 — growing at a blazing 10–13% per year.

But then, something went terribly wrong.

For the past 30 years, Japan has faced economic stagnation, shrinking growth, and a 29% currency crash — with no full recovery in sight. And now, after the Russia–Ukraine war, Japan’s crisis has only deepened.

The big question is:

How did one of the fastest-growing economies collapse into decades of slowdown?
What policy mistakes caused this fall — and could India or any other fast-growing economy be next?

Let’s break down the hard lessons from Japan’s economic decline — before history repeats itself.