With regard to savings, the average savings rate in Japan is supposed to be higher than in the U.S. A higher percentage of income. But the Japanese income may or may not be higher than in the U.S.
To the extent that Japanese save, they put their money in bank accounts, not on the stock market.
Also, there are 250 million or so Americans. Perhaps 100 million Japanese. So even if the American savings rate is lower, the total amount and percentage of savings invested in stocks is greater in America.
Some Americans do save and invest.
Also, even if an American and a Japanese earn the same amount, if the Japanese pays more for land and housing as a percentage of income than an American, because of crowding and overpopulation, the Japanese person actually has a lower standard of living.
I moved from LA to Fresno. I could not afford a home in LA. I could afford a 4 bedroom 1800 sq ft home in Fresno in a nice neighborhood.
The numbers never tell the whole story.
Chinese may save 50% of their income, but if they only earn $300 a year per capita, that doesn't make for a huge capital market or stock market, at least not based on individual investment.
You are reading a lot into my statements that I never intended.
In America, over time the percentage of savings invested in stocks has increased tremendously. Due to the rise of cheap internet trading, mutual funds, retirement accounts. Etc. These are all features of the American economy and American laws.
Many other nations simply don't have as well-developed a financial system and most individuals in many other nations don't have ready access to a liquid stock market.
http://www.kc.frb.org/publicat/econrev/pdf/2q94morg.pdf
In Japan, most people put their money in postal savings accounts at low interest. Much less common in Japan to invest in the stock market.
http://www.stat.go.jp/english/data/h...ont.htm#cha4_3
I am just stating simple facts.
A very high percentage of Americans own stocks, relative to citizens in most other nations. That's just true.
And a huge and growing percentage of American individual household wealth is being invested in the stock market. This isn't necessarily the case in other countries. The same shift might be happening, but our shift started a lot earlier and is much more significant in absolute terms.
You are drawing conclusions about things I never mentioned in my original post.