3 ms·
How did South Korea become such a world power?
- haasted 4y agoThat headline desperately needs the word "cultural" somewhere in it.
- incomingpain 4y agoThe bigger question is how did Japan lose it? It's the same answer. In the 80s and maybe early 90s Japan was blowing up. There was even a trope: https://tvtropes.org/pmwiki/pmwiki.php/Main/JapanTakesOverTheWorld https://tvtropes.org/pmwiki/pmwiki.php/Main/JapanTakesOverTh... So what happened? Why did Japan lose this? Worse yet, why has Japan basically lost decades and still counting? https://en.wikipedia.org/wiki/Lost_Decades https://en.wikipedia.org/wiki/Lost_Decades But the answer is staring you in the face. Economics. https://tradingeconomics.com/japan/government-debt-to-gdp https://tradingeconomics.com/japan/government-debt-to-gdp Or more specifically debt to gdp rising above 100%. Worse yet, their government took on tremendous debt despite personal income tax at 50+% https://tradingeconomics.com/japan/personal-income-tax-rate https://tradingeconomics.com/japan/personal-income-tax-rate South korea basically looked at Japan's failure and didn't do that. https://tradingeconomics.com/south-korea/government-debt-to-gdp https://tradingeconomics.com/south-korea/government-debt-to-... https://en.wikipedia.org/wiki/Balanced_budget_amendment https://en.wikipedia.org/wiki/Balanced_budget_amendment Remarkably Korea doesn't even have to balance their budget and yet they take the responsibility and discipline to do so because you must. Deficit spending will push you forward quicker but leaves you incapable of responding to crisis situations. Which breaks your country. Japan has now lost decades and is trapped in the past. Korea didn't fall for the trap.