There are four types of economies. Developed countries, underdeveloped countries, Japan, and Argentina.
Japan has so many unique sociocultural idiosyncrasies that shape economic decisions.
> Tokyo, young people... because of unstable housing and insecure employment.
This couldn't be more wrong.
People on minimum wage jobs in Tokyo can afford a standalone 1 bedroom apartment in the suburbs. White collar workers can pay off a house in less than 5 years if they wanted, too. The Google engineers can do it in 2, a manager probably 1. My rent's barely 5% of my income versus 30%+ of income being commonplace for young people in Bay Area / New York.
Japan's labor laws are exceedingly protective of employees, and it is nearly impossible to fire a full time employee. This is why you don't hear about layoffs happening in Japan.
There is still widespread expectation that employees will stay at a job for decades, if not their entire life. Unlike America where 401ks replaced pensions and workers have to take more responsibility in their retirement, pensions are still the de factor employee perk in Japan.
That said, pensions are part of the problem. With demographic collapse, the pension system is growingly unsustainable and the likely solution is significant taxes increases over the next few decades.
Other reasons for declining birthrates is social media. For dating, people are exposed to a lot more options which leads to decision paralysis. It's been known that people less populated areas are more likely to marry their high school sweetheart. (Accessible) travel has made less people want to settle down in their 20s and 30s.
As evidence that young people have different different economic priorities, consider the prevalence of fashion consumption in Japan. There's literally a Louis Vuitton store at every major train station around Tokyo. While not at rates similar to China, the luxury goods market is continuing to grow in Japan, despite inflation and economic repercussions of COVID-19. There's 4 Celine stores in Ginza alone, which is an obscure brand to most Americans, but most young Japanese would recognize this. On any given train car in Japan, you will find a young person sporting a garment that's $500+ which is the average rent for a studio in Tokyo.
There are four types of economies. Developed countries, underdeveloped countries, Japan, and Argentina.
Japan has so many unique sociocultural idiosyncrasies that shape economic decisions.
> Tokyo, young people... because of unstable housing and insecure employment.
This couldn't be more wrong.
People on minimum wage jobs in Tokyo can afford a standalone 1 bedroom apartment in the suburbs. White collar workers can pay off a house in less than 5 years if they wanted, too. The Google engineers can do it in 2, a manager probably 1. My rent's barely 5% of my income versus 30%+ of income being commonplace for young people in Bay Area / New York.
Japan's labor laws are exceedingly protective of employees, and it is nearly impossible to fire a full time employee. This is why you don't hear about layoffs happening in Japan. There is still widespread expectation that employees will stay at a job for decades, if not their entire life. Unlike America where 401ks replaced pensions and workers have to take more responsibility in their retirement, pensions are still the de factor employee perk in Japan.
That said, pensions are part of the problem. With demographic collapse, the pension system is growingly unsustainable and the likely solution is significant taxes increases over the next few decades.
Other reasons for declining birthrates is social media. For dating, people are exposed to a lot more options which leads to decision paralysis. It's been known that people less populated areas are more likely to marry their high school sweetheart. (Accessible) travel has made less people want to settle down in their 20s and 30s.
As evidence that young people have different different economic priorities, consider the prevalence of fashion consumption in Japan. There's literally a Louis Vuitton store at every major train station around Tokyo. While not at rates similar to China, the luxury goods market is continuing to grow in Japan, despite inflation and economic repercussions of COVID-19. There's 4 Celine stores in Ginza alone, which is an obscure brand to most Americans, but most young Japanese would recognize this. On any given train car in Japan, you will find a young person sporting a garment that's $500+ which is the average rent for a studio in Tokyo.