Question

In Japan, the bureaucracy carries enormous influence and power. In particular, the Ministry of International Trade and Industry holds a heavy hand in economy regulation. What major contrast with the United States does this bureaucratic tradition create?

Answer 1

Answer:

When the government has a strong say in what businesses do, two things may happen:

1. businesses can become corrupt and inefficient,
2. or the businesses can develop closer cooperation between them and the government that helps them become more efficient.

The later applies to Japan, but also to countries like Chile. Chilean government has signed free trade agreements with virtually every single country in the world, granting Chilean companies huge international markets.

While in the US, even now with President Trump, the government has a relatively small influence in the private sector (except for defense contractors). I believe American corporations have a larger influence on the government, than the influence the government has on them.