More accurately, Japanese interest rates are notably lower than American interest rates (or those anywhere else in the developed world that I can think of).
What this means (for those of your that slept through economics class) is that Japanese manufacturers can accept a much lower return on their investment than American manufacturers in a similar industry -- thus, spend much more $$ on R & D for cool stuff, even if they are unsure of the return.
Likewise, consumer credit is also relatively cheap, thus promoting the purchase of big ticket items.
Someone above mentioned the outrageous price of real-estate:
Thats true, if you only think of the STICKER price. As a Tokyo resident, however, when I realize that people I know here only pay 2 or 3 % interest on a half-million-dollar home, it comes out to a much more reasonable cost if you consider paying for it over a 30-year mortgage.
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More accurately, Japanese interest rates are notably lower than American interest rates (or those anywhere else in the developed world that I can think of).
What this means (for those of your that slept through economics class) is that Japanese manufacturers can accept a much lower return on their investment than American manufacturers in a similar industry -- thus, spend much more $$ on R & D for cool stuff, even if they are unsure of the return.
Likewise, consumer credit is also relatively cheap, thus promoting the purchase of big ticket items.
Someone above mentioned the outrageous price of real-estate:
Thats true, if you only think of the STICKER price. As a Tokyo resident, however, when I realize that people I know here only pay 2 or 3 % interest on a half-million-dollar home, it comes out to a much more reasonable cost if you consider paying for it over a 30-year mortgage.