In the private sector, U.S. firms reviewed their production and management processes, and made necessary strategic adjustments, which has been labeled “re-engineering”. Therefore, to look at developments in the U.S. is useful in considering not only the balance sheet problem but also the kind of structural adjustment which is conducive to increasing productivity and restoring economic dynamism to the Japanese economy.
Economic recovery in the U.S. since March 1991 has often been labeled a “jobless recovery” because it was not initially accompanied by a significant increase in employment and private consumption. However, this gradually changed to a full-fledged recovery with an increase in both fixed investment and employment, resulting in more than eight years of expansion until now.