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Compare the United States economic system to that of Japan. 

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This century both the United States and Japan have ranked in the top five largest economies of the world by GDP (Nominal), with the US consistently maintaining the top position. In 2018, according to the International Monetary Fund, the US ranked number one with a GDP at $20.4 trillion versus...

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This century both the United States and Japan have ranked in the top five largest economies of the world by GDP (Nominal), with the US consistently maintaining the top position. In 2018, according to the International Monetary Fund, the US ranked number one with a GDP at $20.4 trillion versus Japan's $5.2 trillion at number three. This gap can be attributed partly to the fact that the US was home to 327 million citizens by 2018, compared with Japan's population of 127 million, according to Worldometers.info.

Both countries are strong exporters of high tech. Japan's industrial sector relies on imported raw materials and fuels. Both governments provide substantial subsidies to farmers and have high crop yields that feed the world. While the US has transitioned from a manufacturing to a service economy with real estate, professional and businesses and government as leading industries, Japan's top industries are automobiles, consumer electronics and computers.

Unlike the US, which enjoyed an economic recovery following the financial collapse of 2008, Japan experienced recessions throughout the subsequent decade. The country suffered a major earthquake with a 9.0 magnitude in 2011, followed by a tsunami that caused damage to manufacturing plants, which contributed to an economic slowdown.

As far as unemployment, the US dropped to 3.7% in October 2018, as compared with 2.4% for Japan during the same period. The average wage of American workers, according to 2015 data, was $52,988 versus $41,352 for workers in Japan.

Throughout 2018 the U.S. stock market outperformed Japanese stocks, which were negative for the year. US stocks, however, experienced high volatility in the fall, due to numerous factors, such as a cooling housing market, pullbacks in tech stocks, new tariffs, higher interest rates and all time high corporate debt. The US eclipsed Japan in 10-year bond yields at 2.9% versus .06%.

Both nations have racked up enormous national debt from quantitative easing as a strategy to create widespread liquidity throughout the economy. Similarly, both governments raise money for short-term government spending through selling bonds, although Japan uses a different structure. In terms of national debt, the US climbed to $21.3 trillion in 2018, while Japan rose to $9.6 trillion. Yet Japan ran up over twice as much debt as a percentage of GDP than the United States, according to NationalDebtClocks.org.

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Japan is a nation of almost 27 million people, and its economy produced $5.4 trillion in 2017. Japan has a mixed economy based on capitalism and its gross domestic product per capita is $42,700. Among Japan's largest exports are cars and car parts. As climate change encourages the production of electric cars, Japan's economy could suffer, because electric cars use one-third fewer parts than gasoline-powered autos. The United States has a population of 325 million people, with an economy of about $19.4 trillion in 2017, making it the worlds largest economy. The gross domestic product per capita in the US is approximately $59,500. Some of the main exports from the United States are: food, crude oil, aircrafts, auto parts and many more. In 2017, President Trump imposed tariffs on many imported Chinese goods, meaning that nearly half of all Chinese imports to the US are now subject to new tariffs. China retaliated by placing its own tariffs on many American goods. As of this writing, both countries have agreed not to impose any new tariffs for 90 days.

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The economies of the United States and Japan are generally fairly similar.  This is because they are both mixed economies that tend to be fairly market-oriented.  However, the Japanese economy is different from that of the US in a number of ways.

Both Japan and the US have basically capitalist economies.  Both are based on people being able to own property and use it as they like.  However, the Japanese economy is influenced more by its government than the US economy is.  The Japanese government for example, has often helped to guide the national economy by deciding what industries should be emphasized.  There are more laws governing hiring and firing than there are in the US.  The US is, in these ways, more of a free market economy than Japan is.

Another difference between the two economies is in the nature of the firms that dominate.  The US economy is more influenced by relatively small firms.  By contrast, the Japanese economy is very much dominated by large firms.  The US economy is much more open.  Smaller firms have more of a chance to grow and become important.  It is also worth mentioning that the US economy makes much more use of women than does the Japanese economy.

In general, then, both of these economies are essentially market economies.  However, the Japanese economy is more influenced by its government and is also somewhat more traditional and closed than the American economy is.

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