If the Japanese are working so much that some a literally working themselves to death - why is their economy so bad? My guess is that a lot of that time is getting used up with unnecessary busy work rather than actual productive labor.
Consider a simple production function: === Y = zF(K,L) Output = Total Factor Productivity * Function of (Capital, Labor) === Think of TFP as all the environmental variables that make up "technological dynamism" or the economy's technological infrastructure (horse -> steam -> coal -> oil, human capital/education, etc.) that increase productivity in fundamental but intangible ways, and that can only be calculated indir…
This is the economic explanation for the diminishing marginal returns of labor.