One of my all-time favorite movies is the 1982 cyberpunk-noir classic Blade Runner. Not only did the film single-handedly create the cyberpunk genre, but it inspired significant change in the sci-fi genre as a whole, led to classics such as Akira, and inspired great directors such as Guillermo del Toro, Christopher Nolan, and Denis Villeneuve. Its themes of humanity, hyper-technology, hyper-capitalism, femininity, and ecology remain hotly debated to this day. Not bad for a film considered a flop on its initial release.
Set in the distant future of 2019 Los Angeles, the politically and economically dominant Tyrell Corporation has created synthetic humans known as replicants to do dangerous jobs in outer space. For obvious reasons, some of these replicants aren’t thrilled with this arrangement and go rogue. Blade runners are those dispatched to hunt down these rogue replicants. The movie follows one such blade runner, Rick Deckard (played by Harrison Ford), as he hunts down four especially dangerous replicants.
I’ve seen the movie about a billion times. One of the nice things about watching movies you can practically quote by heart is that you can observe the background. Brainpower can be diverted from the plot into observing the setting and how it reflects the mindset of the author/filmmaker/society. In my most recent rewatch, something about the setting jumped out at me. The team that built the setting imagined 2019 Los Angeles as heavily Japanese. Japanese food dominates the culture. The Japanese language is written on signs. Japanese corporations dominate the skyline. Even the Tyrell Corporation was originally imagined as a Japanese conglomerate in early drafts of the film.
Why Japan? Simple: Japan was a rising economic influence and a supposed threat to American economic power in the 1980s. For example, the economist Lester Thurow wrote several books in the 80s and 90s on how the Japanese style of state-guided economic management was destined to overtake America and make them the economic powerhouse of the world. American corporations were afraid of Japanese competition. Peter Drucker praised the Japanese style of management and pressed for it to be established in America. Japan was an existential threat to American economic power, so much so that there were strong lobbies for Congress to impose tariffs and quotas on Japanese imports, lest the dystopia of Blade Runner come about.
Of course, these fears were overblown. Even as Thurow was writing his books, the Japanese economy was stagnating. The 1990s and 2000s were characterized by economic stagnation in Japan, while American economic growth exploded. Over the 30-year period from 1994 to 2024, Japanese real GDP rose just 24.9% (source) while American real GDP rose 115.1% over the same time period (source). Over the same time period, Japanese industrial production (excluding construction) averaged just 0.1% growth (source) while US industrial production averaged 1.2% (source). The widely feared economic dominance of Japan never came about.
Since about 2010, the same fears have arisen with China. The above story doesn’t change, however. Just replace “China” with “Japan” and “Peter Navarro” with “Lester Thurow.” It’s the same claims of coming economic dominance by state-run conglomerates and the superiority of industrial policy. America must be afraid, must capitulate to these supposedly superior foreign powers, must adopt their systems, lest we be overrun. And just like with Japan, these fears are obsolete even as they are made. The Chinese economy is stagnating. They’re wasting resources left and right, something that is unsustainable. Short of substantial market reforms, China will end up on the ash heap of economic history, just like Japan. All those fears will soon be lost like tears in the rain.
Fiction provides us useful insights into the past. And one of the big lessons is this: the more things change, the more they stay the same. The hand just rearranges the players in the game.
P.S. It is also interesting to me how sticky culture can be. Even though the fears of Japanese dominance have faded, cyberpunk media still portrays Japan as a dominant influence in their worlds. For example, in the video game Cyberpunk 2077, set in the distant future of 2077, Japanese culture is dominant in the fictional California city of Night City. Ridley Scott’s arbitrary choice in the 1980s still appears in 2025.
P.P.S. I gave Midjourney a picture of me and told it to put me in a cyberpunk setting. Here is my favorite result:
READER COMMENTS
Craig
Mar 12 2025 at 8:29pm
Great movie for sure. Couple other Japanese-angst references: 1. Back to the Future shows a future Japanese boss firing Marty; 2. 1980s Die Hard, bit more subtle, but the German terrorists are targeting the bearer bonds of the Japanese corporation, 3. Rising Sun, Sean Connery/Wesley Snipes are investigating a crime. Last one I can think of is Naked Gun 2.5 where Mayor of LA laments destruction that its going to cost millions of yen.
“I gave Midjourney a picture of me and told it to put me in a cyberpunk setting. Here is my favorite result”
Interesting but let me ask you: You’re watching television. Suddenly you realize there’s a wasp crawling on your arm. How would you react?
😉
Craig
Mar 12 2025 at 8:34pm
Another good one actually is Freejack where the future is a world of gross inequality between the haves and the have nots and the technology exists to go back to a precise moment in time and pull somebody into the future just before they die, except Emilio Estevez lives. One part in that movie has a character referencing the fact that the trade war was lost.
Jon Murphy
Mar 12 2025 at 8:44pm
Very very slowly.
A spider, on the other hand, would have me shrieking.
Craig
Mar 12 2025 at 9:29pm
In your next post make sure you take care of the arachnid threat!
Alan Goldhammer
Mar 13 2025 at 9:03am
Good post! I always make it a point to reread some of William Gibson’s cyberpunk novels. “Pattern Recognition” is a good one that has a lot of stuff relevant to what is currently going on.
Regarding Japan, there was a lot of angst in the early 1980s about how Japan was going to take over as the major industrial power (they were already buying up a lot of real estate). I had moved on from research to doing regulatory work in the biopharma industry and was working for a biotechnology trade association at the time. At one of our annual meetings we had Clyde Prestowitz as a speaker. I can’t remember whether he was still with the Reagan Administration (probably not) and he gave a talk that was highly critical of the nascent industry as many companies were getting venture funding from large Japanese corporations in return for equity. These were largely startup companies and they needed as much funding as they could get for product development. Needless to say, there was not a takeover of the industry by Japan and Japan really was never a significant factor in the industry.
Predictions often do not come true.
Jon Murphy
Mar 13 2025 at 9:13am
As Yogi Berra said: it’s hard to make predictions, especially about the future.
I do think it’s funny how much history we have of these fears being overblown and yet they keep coming back and back and back.
steve
Mar 13 2025 at 10:37am
Wife is a serious Sean Connery fan and loves the movie Rising Sun where the Japanese are portrayed as taking over everything. There were actually a lot of movies expressing that fear or anger over that happening. I agree the fear is similar now, but until recently I wasn’t that worried, though China does have some advantages. It’s large enough that it can have nearly complete internal supply chains. It has a larger internal market. However, I thought that ultimately its central govt would remain too dominant.
Now I am less certain. They certainly seem to let a lot of companies/sectors have pretty free rein without a lot of govt involvement, though I dont follow their internals enough to know if that is more selective than is apparent. However, on our side of the issue I am concerned that we have shown ourselves to be an unreliable trading partner. We negotiate trade deals and then unilaterally ignore them. I think that is bad for business. Maybe I am thinking too much like a business person? If someone reneged on a deal with my corporation or tried to force us to unilaterally take some losses so that we would lose money instead of them I got out of business with them as soon as I safely could. Lie down with dogs, get up with fleas.
Steve
Jon Murphy
Mar 13 2025 at 10:58am
I totally agree with your point and concerns. Trump’s arbitrary behavior is forcing American firms to be unreliable.
Those aren’t advantages per se. The Law of Comparative Advantage is still at play. As we have seen with China’s inward turn over the past decade or so, “managing” international trade leads to slower growth and misallocation. Large internal markets and supply chains can be useful in certain situations, but it’s better to tap into a more efficient supply web than rely on domestic supply only.
Jon Murphy
Mar 13 2025 at 11:17am
Just to be clear, I am not trying to poo-poo your point about internal markets. The depth of a market is important. Rather, what I mean to say is that the international market is even larger. Even a country with a large internal market like the US or China can be “small countries” in the global marketplace.
Mark Barbieri
Mar 13 2025 at 12:36pm
It is gratifying to read this. Most people I know suffer from a collective amnesia about the Japan scare of the 80s and 90s. In fact, the people who were the most vigorous at trying to convince me that I should be angry at the Japanese for taxing themselves to make my TV cheaper seem to be the least able to remember their fears. I presume that’s because they are now distraught that China is now making those cheap TVs.
Warren Platts
Mar 14 2025 at 7:39am
Mr. Murphy is fond of reasoning by analogy. The Japanese and the Chinese are not the same by any means. Japan has been a constitutional democracy since the mid-19th century. They are about the best ally we got. China is a Communist (and economists of all people ought to know what that entails) empire that is doing the biggest rearmament in world history in order fight a war with us. Just because Japan did not nuke us in the 1980s, it does not follow that the PRC Empire is not a threat. The “argument” is prurient Orientalism..
As for the movie, that was based on a weird Philip K. Dick novel that none of you have apparently read. The Japanese stuff wasn’t because Japan was a threat, but because Japan is cool. Communist China really is not. I will take Japanese culture over China’s any day..
Jon Murphy
Mar 14 2025 at 8:09am
Please familiarize yourself with the Tokugawa Shogunate (1603 – 1868) and the Meiji Revolution (1868) which returned Imperial rule to Japan. The constitution you mention didn’t come about until 1947.
The historical context disproves your claims, which is why I spent so much time in this post laying out the historical context.
Warren Platts
Mar 14 2025 at 9:04am
Nope. You are flat out wrong. And anyways, when did constitutional democracy start in the PRC? You are the expert!
If the claim is that Japan is not cool, you are wrong again…
Jon Murphy
Mar 14 2025 at 12:34pm
Do you have a response to my post?
Warren Platts
Mar 15 2025 at 4:03am
Jon, the Wikipedia is your friend. The Japanese had parliaments, elections, and prime ministers and stuff since the 19th century. This is not in dispute. The Chinese never did. Well, they tried it once (or twice if you count Tiananmen) after the Qing Empire fell apart. Guess what happened? The people voted with their feet and the place entered the so-called “Warlord Era.” That was actually a time of great cultural flourishing, but whatevs…
https://en.wikipedia.org/wiki/Meiji_Constitution