“The whole Japanese model is a corporatist welfare social model. People are ambivalent about the need to change that.” – Noah Smith
I highly recommend listening to Noah Smith on Abenomics over at Alphachat from the Financial Times.
It really lays out how Japan is the biggest economy that has never experienced supply-side reform.
I particularly like the discussion about “zombie companies” being propped up by cheap loans from banks they have cross-shareholding relationships with.