Japan's economic bubble in the 1980s, characterized by extremely inflated property prices (with Tokyo real estate reaching absurd levels), burst in the early 1990s, causing the stock market to crash and real estate to collapse; this event marked the beginning of decades of slow economic growth, an aging population, and demographic challenges that continue to affect Japan today.
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How Japan Went From Economic Giant to StuckAdded:
Japan went from unstoppable to economically stuck. Back in the 1980s, people genuinely thought Japan might become richer than the US. Tokyo property prices got so ridiculous that people joked the Imperial Palace was worth more than all of California. Then the bubble burst. The stock market crashed, real estate collapsed, and Japan's economy never fully recovered.
According to The Economist, Japan then spent decades dealing with slow growth and an aging population, and now there are more adult diapers sold in Japan than baby diapers, which is honestly a brutal economic statistic.
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