Lesson: Zombie Apocalypse
Zombie companies are firms that cannot generate enough profits to cover their debt payments yet are kept afloat by continual infusions of credit from banks. Japan has been grappling with the issue for many years, and it may finally be coming to a head. This phenomenon has been a concern for Japan’s economy because these companies tie up valuable resources that could otherwise be allocated to more productive and innovative ventures. The prevalence of zombie companies has also hindered economic growth and productivity, as these firms are effectively blocking the reallocation of capital and human resources to more viable businesses. The situation has been exacerbated by Japan’s low-interest-rate environment, which has enabled these zombie firms to continue borrowing at cheap rates, delaying the necessary restructuring and exit from the market. However, interest rates are now rising after 18 years of being set at zero or near zero.
Addressing the zombie company issue in Japan is crucial for revitalizing the economy and fostering a more dynamic and competitive business environment. Japan may finally just let them fail.
YouTube / iTunes / Spotify / Radio Public / Pocket Casts / Google Podcasts / Breaker / Overcast
Listen to ArtisanEnglish.jp posts & lesson intros here.
Example Article
Each conversation topic is based on a theme. In order to help students acquire a basic understanding of that topic, four media articles are provided for them to read. I will never test you on the articles, but I strongly suggest you book lessons far enough in advance to give yourself enough time to properly prepare. The better prepared you are, the more benefit you will receive from our conversations.
Below is an example article for this conversation topic.