The US, Prioritizing "Self-Responsibility," Injects Massive Public Funds

The financial crisis originating in the United States has spread globally and shows no signs of abating. Despite the US government committing approximately 75 trillion yen in public funds to avert the crisis and begin purchasing non-performing assets from financial institutions, the future remains shrouded in uncertainty.
For America, a nation that consistently preaches self-responsibility and self-reliance above all else, stepping in to rescue major financial institutions with taxpayer money is an unprecedented move. However, voices of dissent are rising among American citizens, with many exclaiming, "We absolutely oppose using our tax money to bail out large corporations." Some American academics and financiers even point to this as a "once-in-a-century great depression."

Consumption Spending and the Differences Between Japan and the US, Which Influence Economic Trends

What cannot be overlooked is the state of household finances, which hold the key to economic trends. The composition of personal financial assets differs entirely between Japan and the United States.
In the United States, consumption spending, which drives economic activity, accounts for 70% of the gross domestic product. In Japan, it is just under 60%. If households were to collectively increase their spending, the economy would undoubtedly improve. While public investment and housing construction are said to stimulate the economy, their share of the GDP is at most a few percent to less than 10%.
Their impact is immeasurably smaller compared to individual consumption spending. Therefore, let us compare household finances (personal financial assets) between Japan and the US.
Japanese household financial assets amount to approximately 1,600 trillion yen. Half of this is held in deposits. Investment trusts and other stock-related assets account for less than 10%.
In contrast, American household financial assets total around 4,300 trillion yen (approximately $43 trillion). Looking at the breakdown, deposits represent only about 10%. The largest portion, over 40%, is in investment trusts without principal guarantees.

US Household Assets Concentrated in Stocks

As is already understood, these assets are concentrated in stocks, which are financial products without principal guarantees. Consequently, the damage from stock market crashes, like the current one, is immeasurably greater than for Japanese households. American households will likely further curb their spending due to the stock market collapse.
It will likely take at least three years to recover from this recession. Compared to the United States, Japan's exposure to this financial crisis is overwhelmingly less. As evidence, Japanese financial institutions and other major corporations have acquired overseas banks and securities firms,
or made substantial investments. Foreign countries are seeking loans from Japan, and the Bank of Japan has prepared a large amount of US dollars, which it is lending to global markets.
We want you to understand that the recessions in Japan and the US should not be viewed as being on the same level. While both countries are experiencing economic downturns, there is a significant difference between them.