Japan has slightly outperformed the United States in per capita income growth since the early 2000s.
Japan has learned from its economic mistakes in the past and has adopted some long-overdue reforms, some of which have begun to pay off. Of course, Japan, like the U.S., continues to face formidable obstacles in sustaining domestic economic growth and global competitiveness. Japan recently reduced its top corporate tax rate to be competitive with other OECD nations. The top U.S. rate, meanwhile, is now the world's highest so it bears asking whether the U.S. can learn from Japan and act quickly to avoid its own lost decade.