On the twenty year lost decade in Japan, from my Dangerous Return of Keynesian Economics:
It ought to be the textbook case now for why all such forms of economic stimulus should be avoided at all costs. Because, say what you will about the causes of the Japanese downturn and the failure to recover, all major economies experienced the same deep recession at the start of the 1990s, but only the Japanese economy has never fully recovered its previous strength.
That is, only the Japanese tried a public sector stimulus to end their recession in the 1990s and their economy has never recovered. So we take you now to the United States: Half of U.S. May Endure ‘Lost Decade’ of Depressed Employment
Economic recovery has been unusually sluggish and uneven across regional U.S. job markets, with employment set to stay low for years to come in areas that endured the recession’s worst, according to new research.
At the current pace of improvement, employment rates across the U.S. won’t return to normal levels until the 2020s, “amounting to more than a relative ‘lost decade’ of depressed employment for…half of the country.”. . .
Based on the current trend, employment rates won’t converge to their normal levels until sometime in the 2020s. . . .
“We’re at six years of depressed employment and counting.”
Only about a dozen years to go to catch up with the Japanese, who by then may be in the 30th year of their lost decade.