The Specter of Financial Socialism - Session 7

Add-On Session by Jesper Koll and GlobalTreehouseThe question we received most after publishing the 8-part series Capitalism That Works was: Can it work in the West?Jesper addresses this big question.

Even the most optimistic Japan economists recognize that there are still overt weaknesses in Japan’s form of capitalism. After years of fundamental reforms there are still structural problems that, if addressed, could significantly contribute to better governance, more transparency, and global success.

Japan’s financial markets – fact or fiction: what is the current reality and is this problematic for Japan? This episode further examines why the public sector is happy to take on more debt while the private sector and individuals remain risk averse. Jesper will explore options and solutions.

This session looks at the start-up environment in Japan and the coming entrepreneurial boom. Yes, venture capitalists do make money in Japan and the digital and economic transformations under way will add further incentives for investment and doing business in Japan.

Hoarding for what? This episode explores the habit of household cash hoarding and the huge balance sheets held by Japanese corporations. Is this fundamental supersaver aspect harmful or helpful for the economy and society? Will the supersized public sector debt be a future drag on the economy in the form of higher taxation?

From a corporate governance perspective, Jesper traces the evolution from Zaibatsu to Keirestsu to free agent companies. He examines Japanese corporations from multiple perspectives: lack of excessive competition, global diversification, and capitalists with too much capital.

Demographics are often cited as a reason for pessimism in a rapidly aging Japan. In this episode Jesper explores the demographic “sweet spot” by looking at labor market realities, the rise of the new middle class and affordability of housing. Jesper gives us reason for hope for future generations of Japanese and for Japan itself.

This session looks at the quality of the people running Japan. How they have managed the orderly transition from an overheated “bubble” economy, how they have applied a pragmatic approach to managing deflation while raising purchasing power and focusing on creating common social capital.

This presentation looks at the criteria by which we judge economy and society: optimizing for multiple objectives, equality of opportunity and equality of outcome, and the value of balance and stability.