One only has to look at Japan’s economic model to discover the vast shortcomings of the U.S. In 1945 Japan emerged from the ashes, and transformed itself into the most efficient production economy in the world. In just 67 years Japan has become an economic powerhouse, far outstripping the U.S.

Japan takes up less land mass than California, yet this tiny island nation provides numerous examples of what a country can accomplish in infertile and mountainous terrain. Japan has no natural resources; the country possesses no oil, iron ore, coal or timber.

In order to manufacture a product, Japan has to import all of its required resources, and yet Japan still manages to have a larger annual balance of trade surplus with the U.S. and has accumulated one-third of the world’s savings in previous years.

Japan currently has the second largest currency account surplus next to China. The country has a constant balance of trade surplus with the U.S. and China, while the U.S. has a $230 billion balance of trade deficit with China.

Japan’s economy is knowledge and capital intensive. In Japan one man at one machine can produce the same output as 100 men at one machine in the U.S.

If we are to compete, the U.S. has to take advantage of its size and resources and make drastic changes to the way we run our country.

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