This Globe and Mail article describes the downfall of the Japanese economy during the 1990s, and relates it to what is happening with the global credit crisis. There are a lot of similarities for sure, however the difference between Japan and the United States is that the United States doesn't really export anything. They are not the leaders in advances in technology anymore. They do not have many natural resources anymore that can be widely exported. Most manufacturing has been shipped off to overseas markets while people were making money off stock markets and housing. However, with the housing market bubble burst and stocks worth half what they were 6 months ago, what is the solution?
Well, it looks like an Obama presidency is planning to do what they did during the depression - build up infrastructure. Will an American public that has lived off credit the past 10 years be able to go back to the construction block? Certainly these jobs will not give people the kind of money that they are used to having for spending. However, improving infrastructure is a great and much needed investment. If, for instance, they were to build high speed train rails between the major cities of the US, they could cut down significantly on the reliance on fossil fuels and increase productivity as it would take less time to get from place to place. Time will tell how this plan will work out, but it is a good start.
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