The Self-Inflicted Wounds of the Japanese Economy
The AFP has a good story about how three over-reactions to consumer worries by Japan's bureaucrats hurt the economy during the past year.

The first instance was the introduction of stricter construction standards for earthquake resistance following the falsification of data by a Japanese architect. It sounds fine on paper, but the new rules lengthened the permit approval process from three weeks to more than two months.

The second was new regulations that severely limited the interest rates charged by consumer finance companies. Again, the aim was laudable, in this case to protect poorer Japanese from high debt. But less-well-off consumers depended on the high-priced loans from the finance companies, and they now have to turn more often to the black market.

Finally, life insurers have been forced to go back over 30 years' worth of records to find policyholders who were entitled to benefits but didn't receive them. The action shifted the burden for notification from policyholder (where it resides in the US) to the company. Again, noble goal, but it cost the industry in excess of $2 billion and reduced the level of trust between consumer and the insurers.