I viewed this video and the story is much more simpler than what he is pointing out. You don't need to be economically literate to understand what happened. Basically Japan was a US militarily occupied lapdog and so is not a soverign nation. Was there any other possible outcome for them?
It's not actually that. If Japan really wanted, they can get rid of US.
Japan is just too small and has no international friends (courtesy of past behavior). If they had enough consumer base to drive a consumption economy like China, they would have done as well too.
In government, Japan has many similarities to China. For example, both are one party states that retain a nominal degree of democracy through local elections. The difference is that Japan's party serves the Keiretsu elite while China's party serves the electorate. However, a rising tide lifts all boats, so Japan's government is effective, as the material conditions of the electorate is also increased when the elites are empowered (through at the cost of livability).