I think some of this rampant over-staffing is more cultural than the product of a funny economic buildup. If you've been to other Asian countries, you'll see people doing ridiculous jobs (sidenote: many people in Taiwan have someone else wash their hair, there are people who have never washed their own hair before and don't know how).
Also the second to last paragraph is so true. Japanese people are somewhat crazy about their savings. They tend not to invest but instead put it in banks (sometimes at rates below inflation).
"... Japanese people are somewhat crazy about their savings. They tend not to invest but instead put it in banks ..."
Maybe because they are more experienced with an older culture. It makes sense to have cash in hand with larger, older populations. You can see the consequences of not doing this reading the quote below...
"... the deteriorating financial condition of our federal government in the face of skyrocketing health-care costs and the baby-boom retirement could fairly be described as a super-subprime crisis ..."
Also the second to last paragraph is so true. Japanese people are somewhat crazy about their savings. They tend not to invest but instead put it in banks (sometimes at rates below inflation).