There are many historical events in this world. We commonly reflect on them and think back about what happened at that time and also to think about the situation in that time. However, when we research and come out with 1 specific information in 1 specific perspective, you won’t know other people’s perspective and you won’t know whether other people see this historical event in a same way. To consider if people see history in same way, I chose “Japan economic bubble burst” as a historical event and researched about this event. I would like to now compare the information I gathered with other people’s perspective by interviewing other people who lived through out that time.
What is “JAPAN ECONOMIC BUBBLE BURST?”
In 1980s, Japan was earning many profits in trading businesses. However, the United States weren’t. To help the United states, England, France, Germany, and Japan made an “Plaza Agreement” (1986~1991) which made the yen weaker. By this, it made the United States and other foreign countries buy japanese products cheaper. However when the yen’s weaker, the japanese people will start to sell dollars and buy the yens, because they can make profit out of it. This will make the Japan’s exporting companies appear to be in a high-yen recession situation. To avoid this situation, the bank of Japan decided to lowered the interest of lending money to the general bank by 2.5%. As the bank of Japan’s interest falls, the general bank started to also fall down the interest and made the companies borrow money more easily. In the mean while, everyone was believing that every lands, product’s price will keep on rising. So everyone started to buy lands because they thought that the price will rise and if they sell the land, they can get profit out of it. Those days, the price of lands and stocks were incredibly rising. This situation is called as the “asset inflation.” In reality, the Japan will be inflated with the rising stocks. However, the Japan wasn’t inflated at that moment because Japan was buying many cheap foreign products. The rising price and the action of buying many goods made the both decrease and increase of the money balance out well. However, the government and the national Japan’s bank warned that if the cost never stops rising, Japan will end in inflation situation. So to avoid the inflation, the Japan’s bank raised the discount rate from 2.5% to 6%. They have also started to not lend moneys towards the real estate companies. This made the price of the land decrease. Then people who had bought the land by borrowing money from the bank couldn’t return the money to the bank because everyone stopped buying their lands. By people not returning the money, the banks couldn’t lend money to companies. Then the companies couldn’t borrow money so they couldn’t start a new business. Companies couldn’t afford money so the worker’s salary kept on decreasing. This worst economic situation is the economic bubble.
However, is this information really true? Merely, this is just a information brought from a certain perspective. So this doesn’t mean that this information is agreed and it is true for everyone. To see whether people see history in the same way, I interview my dad who lived through the Japan economic bubble generation. He was about 20~30 years old during the economic bubble generation. He was working for a real estate company.
The primary source that I got is a envelope for a cash contribution. At their work, they needed to have an goal settled. If they achieved their goals, even it’s not a big deal, they got at least 10 thousand yen for their present (cash contribution.) This tells us that companies had a lot of money which expresses the wealthy bubble generation. So the information about people being super wealthy during the bubble generation is true 🙂 This is the actual envelope that they had the money in. (my mom’s.) The company president put some money in the envelope and passed it out to the workers.
From the interview, I found out that people see most of the basic history’s information in the same way however, not everything. When I questioned my dad, “were there any other events that made the economic bubble situation start?”, my dad have answered that, “the situation may have started by Japan lowering the interest rate in order to make the Japanese people use money and lend money more efficiently.” This answer was different from the information that I have gathered which I learned from looking at several sites. On most of the sites and also on my information, it said that bubble economy started from the plaza agreement. From this, I have noticed that people see histories differently in some areas. People doesn’t completely see histories in the same way.
WHY do people see history DIFFERENTLY?
Well, noticing that people see history differently, why do people see them differently? In what actions does it make people see histories differently?
Reason 1. Different EXPERIENCES
Well, I think that people see history differently by experiencing different events throughout that time. I read an article about a worker at a real estate company and he said that he had a good time during the economic bubble generation because he earned a lot of money and got very rich. He also said that he had a good time because he didn’t lose any houses or anything when the bubble bursted. However, my dad saw this generation as a bad generation because my dad’s brother has lost his house from the bubble burst. And also my dad’s friend’s company got bankrupted. Also, my dad’s life got harder because after the bubble burst, their incomes has gotten lower so they needed to work more in order to continue their normal life routine.
Reason 2. Learning DIFFERENTLY
Another reason of why people see history differently is because that people learn from history very differently. From reading all of the information, I have learned that…
- people shouldn’t lend or borrow moneys easily. They should know the risks of lending and borrowing moneys. This is because as in economic bubble burst, people lend and borrowed moneys way too easily and didn’t think much about giving it back the loans. So they ended up being poor with no moneys or ending up with not being able to give back the loans.
- people shouldn’t be earning money by buying stocks and by buy selling lands. Because you won’t know when another bubble burst will come and when it happens, if you were buying several lands and were planning to sell them to earn money, you will probably end up with loans because during bubble burst, not many people will want to buy lands in expensive prices. So do as stocks.
My dad have learned that…
- to avoid economic bubble burst, it’s important to be not affected by bubble economy. (this means that even the prices of lands increase, they shouldn’t think of buying them and selling them more expensively than the original price to earn profits.) If people get affected by the rising price of the bubble, the same economic situation will be repeated and the economic condition will again be worst.
- to earn money, it’s best to just work like we normally do. It’s impossible to earn money without working. It’s impossible to be rich by only buying and selling lands and stocks. People will always need to work for money.
- when something went wrong during the generation such as economic bubble burst, it’s important to try to fit yourself into that situation to go through the hard time. Such as re-thinking and organising your life routines. For example, if you were living through the economic bubble burst generation, you can try to fit yourself by re-organising your life style in a style of saving money.
So, people see history DIFFERENTLY by…
- Experiencing different things
- By learning different kinds of things from that history.
- Econtrader. “What Is Japanese Bubble Burst.” What Is Japanese Bubble Burst. Econtrader, n.d. Web. 20 Apr. 2015.
- Johnston, Eric. “Lessons from When the Bubble Burst | The Japan Times.”Japan Times RSS. The Japan Times News, 05 Jan. 2009. Web. 20 Apr. 2015.
- San José State University Department of Economics. “JAPAN’S BUBBLE ECONOMY.” JAPAN’S BUBBLE ECONOMY. Apple-magic.com, n.d. Web. 20 Apr. 2015.
- Tokyo, Bill Powell /. “TIME’s Annual Journey: 1989.” Time. Time Inc., 18 June 2009. Web. 20 Apr. 2015