For example, Car Rental places are likely doing a great business right now. Business flights (unless they are private planes mostly aren't happening (both prop and jet private planes). Business slows down. Then you have nothing coming to the U.S. mostly shipped by individuals at all anymore. Only Companies shipping no private personal shipments allowed lately from other countries. So, unless you go somewhere and put something directly into your luggage and bring it back here it's not coming here unless someone smuggles it here these days.
So, international livelihoods are affected a lot and international businesses too.
Watching all this happen makes me think that a Great Depression or another Great Recession can't be very far away.
Or something else like STagflation that might be even worse than another Great Depression like the way Japan was affected in the 1990s and 2000s.
begin quotes:
Japan is currently experiencing a period of mild stagflation, characterized by rising inflation and low economic growth, following decades of stagnation. This
combination of rising costs and a struggling economy is causing a
decline in real wages and impacting household budgets, despite recent
wage growth. While
some optimism exists for potential economic revitalization, long-term
structural challenges, including a shrinking workforce and slow
productivity growth, persist. You can watch this video to learn more about Japan's economic stagnation and the "Lost Decades":
Causes and contributing factors
Decades of stagnation:
Japan's
economy entered a period of stagnation in the 1990s, often called the
"Lost Decade," following a stock market bubble that burst.
The Plaza Accord:
The 1985 Plaza Accord,
which led to a sharp appreciation of the yen, is seen as a contributing
factor to the eventual bubble and subsequent crash, according to Wikipedia. Structural issues:
Underlying
problems like a shrinking and aging workforce, rigid labor markets, and
the slow service sector have contributed to long-term economic
challenges, says this YouTube video and this YouTube video. "Zombie firms":
The
survival of unproductive "zombie firms," often kept afloat by
subsidized loans, has hampered productivity growth, notes Uncharted
Territories. Global factors:
Factors
like global capital flows and trade tensions, such as US tariffs, are
also creating pressure on the economy, according to Binance and Forbes. This video discusses how Japan's economy has been affected by stagflation:
Inflation:
Inflation has been rising, exceeding 2% for over two years as of July 2024, with some price hikes being quite significant.
Economic growth:
Despite inflation, economic growth has been sluggish. For
example, Japan's GDP fell 0.7% in the first quarter of 2025, and
long-term growth prospects are projected to remain low, according to this YouTube video. Real wages:
Even with some wage growth, inflation is outpacing it, leading to a decline in real wages and reduced consumer purchasing power. BoJ response:
The
Bank of Japan has begun to raise interest rates for the first time in
17 years, signaling a potential shift away from its long-standing
accommodative policies, notes The Economist. Stagflation Is Coming For Japan Faster Than The U.S. Economy
May
29, 2025 — Suddenly, analysts at Moody's Investors Service, fresh off
downgrading Washington, might turn their attention Tokyo's ...
Causes of Japan's Economic Stagnation | FSI
Japan had a vibrant economy. Then it fell into a slump for 30 years. : Planet Money : NPR
Apr 5, 2024
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