One if the problems in Japan is they can’t tolerate unemployment. Despite decades of stagnation their unemployment rate since the early 90s has been about half that of the US. One of the great strengths of the American economy is embracing creative destruction. That of course has terrible costs to individuals, but companies know they can shed workers in hard times, and safely hire them again when needed without being locked into costly long term employment contracts. As a result, along with efficient capital markets, the US can adapt very rapidly to economic change.

Don’t get me wrong, I’m a Brit and, though generally conservative, believe we have a batter balance between social support and economic flexibility. The US health care system appals me for example. That doesn’t blind me to the advantages of the US system.