So far the US is running the Japanese playbook from circa 1991. Run up an enormous national debt with no realistic prospects of repayment. Capitalize failing and over-leveraged domestic firms that are politically favored. Restrict immigration and use subsidies to run up the cost of housing so high that people stop having babies and the population grays (the U.S. now has a similar percentage of its population over 65 as Japan did in 1990). Print yen dollars like mad in an attempt to keep the disinflationary pressures from causing a depression - and to fund the government.
Yet even that approach has its ups and downs. The Nikkei 225 has been a very bumpy ride to nowhere since 1991.
https://www.marketwatch.com/investing/index/nik/charts?countrycode=jp
The endpoint is an empty shell of a country, financially and demographically, but at least one generation got to enjoy low taxes.
Big difference between US and Japan - their bubble was much bigger in 1990 than the US is today. I think the Nikkei 225 PE was 80 or something like that. So prices had to come down no matter what. Their shrinking population has been a double whammy, and they just can't grow themselves out of the deflationary spiral, even though they are printing money like crazy.
As long as the US continues to keep it's borders open and bring in immigrants, our economy should not turn out like Japan. And if tech automation increases production above human labor, that will only help matters.
We start to shrink our population and we'll be in a world of hurt (unless automation picks up the slack). For sure.
I am glad I won't be living when work population is shrinking. My grandkids will have to figure out how to grow their savings in a shrinking world. Gonna be tough.