"Has Japan 🇯🇵 really become poor?" — The current state of the Japanese 🇯🇵 economy, which cannot be seen through average annual income alone.

Introduction

"Singapore approximately 8.7 million yen, South Korea approximately 5.7 million yen, Japan approximately 4.78 million yen."

Looking at these figures, it is not uncommon for people to feel that "Japan is no longer a wealthy country."

Furthermore, as the national burden rate, which combines taxes and social insurance premiums, increases, the feeling that "take-home pay is not increasing" adds to the burden, and anxiety grows.

However, has Japan really become a "not wealthy country"?

There is a reality that cannot be seen through numbers alone.



Japan's changes seen from history

From the latter half of the Showa era to the early Heisei era, Japan boasted high salary levels and stable employment as the world's second-largest economy.

On the other hand, over the following 30 years,

* Deflation
* Declining birthrate and aging population
* Decrease in the working-age population
* Weak yen
* Stagnant wage growth

overlapped, and nominal wages did not grow as much as in other countries.

During that time, South Korea and Singapore grew rapidly, centering on export industries, finance, and the IT industry, and their average incomes also increased significantly.



On the other hand, it cannot be compared by average annual income alone

On social media, only average annual income tends to attract attention, but the richness of life is not determined by that alone.

For example, Singapore has

* Extremely high car ownership costs
* Rent at the world's highest level
* High prices

South Korea has

* Income disparity between large companies and small and medium-sized enterprises
* Intense competition for entrance exams and employment
* Housing problems for the younger generation

and other challenges different from Japan.

Japan has

* World-class public safety
* Universal health insurance
* Convenience of public transportation
* A relatively stable society

which are also values.

In other words, "average annual income = life satisfaction" is not true.



Latest challenges

However, that does not mean Japan has no challenges.

In reality,

* Stagnant real wage growth
* Decline in purchasing power due to the weak yen
* Increase in social security costs
* Decrease in disposable income for the younger generation

are affecting many households.

The feeling that "there is less leeway than before" reflects not only the numbers but also the reality of daily life.



5 Whys Analysis

Why 1

Why do people feel that "Japan has become poor"?

→ Because salaries are not keeping up with rising prices.

Why 2

Why are they not keeping up?

→ Because the pace of productivity improvement and wage increases has been slower than in other countries.

Why 3

Why has it been difficult for productivity to grow?

→ Multiple factors such as population decline, a mature market, and long-term deflation have overlapped.

Why 4

Why is the sense of national burden strong?

→ Because the weight of social security costs is increasing along with the aging population.

Why 5

So what is the real challenge?

→ It lies in facing the structural challenge of how to increase productivity and disposable income, rather than a binary choice of "is Japan rich or poor?"



Implications for us

It is the same for companies and individuals.

Corporate value cannot be measured by sales alone.

True strength can only be understood by looking comprehensively at profits, customer satisfaction, investment in the future, human resource development, etc.

The country is the same.

If you look only at average annual income, Japan faces a harsh reality.

However, there are also values that are difficult to express in numbers, such as social stability, safety, the medical system, and life infrastructure.

That is why it is important to have an attitude of calmly grasping challenges while looking at multiple indicators, rather than relying on emotional arguments.



Outlook for the future

Japan still has high technological capabilities, manufacturing, research and development capabilities, and abundant financial assets.

In the future,

* Productivity improvement through AI/DX
* Startup cultivation
* Labor market reform
* Investment in education

If these progress, there is a sufficient possibility that income can be increased again.

Neither pessimism nor optimism alone, but "facing reality and accumulating improvements" will lead to Japan's next growth.



"The future depends on what we do in the present."
"The future is decided by what you do now." — Mahatma Gandhi