Economy
19 items
The Structure of Price Hikes — Why Only Food Keeps Rising
Food CPI rose +6.8% year-on-year while the overall index climbed +3.2%. Why do food prices stand out? Japan's 38% food self-sufficiency rate, yen depreciation, the 2024 logistics crisis, and intermittent energy subsidies converged to push over 20,000 food items to price increases in 2025. The Engel coefficient reached 28.6%, the highest in 44 years. This article dissects the structure behind the 'price hikes.'
Where ¥130 Trillion Goes — Reading Japan's Social Security Spending by Category
Japan's social security benefit expenditure reached ¥135.5 trillion in FY2023. Pensions account for ¥56.4 trillion (41.6%), healthcare ¥45.6 trillion (33.6%), and welfare/other ¥33.5 trillion (24.7%). This article breaks down spending by category, examines the benefits these expenditures deliver, and covers GPIF, long-term care, OECD comparisons, and the intergenerational asymmetry of benefits and burdens.
Japan's Consumption Tax Regressivity Depends on the Lens — Effective Burden Rates and the Social Insurance Blind Spot
Japan's consumption tax regressivity is a fact on an annual income basis, but some argue it is proportional over a lifetime. Households earning under 3 million yen bear an effective rate of 5.7%, while those earning over 10 million bear just 2.1%. The reduced rate has limited effect, and refundable tax credit discussions are accelerating. Combined with social insurance premium regressivity, we unpack the full picture of structural tax burdens.
Why Wages Don't Feel Higher Despite 5%+ Shunto Gains — The Structure Behind Four Consecutive Years of Negative Real Wages
The 2026 Shunto wage increase came in at 5.26%, the highest in 33 years. Yet real wages fell 1.3% in 2025 on an annual basis — the fourth consecutive year of decline. The sector gap between accommodation/food services (¥2.79M) and utilities (¥8.32M) remains threefold. Japan ranks 24th among 38 OECD nations. This column examines the structural reasons why "working hard still doesn't feel rewarded."
Industries Where Wages Rose or Fell Over 30 Years — Real Wages by Industry in One Chart
Japan's real wages peaked in 1997 and have been falling across all industries on average — but the story varies sharply by sector. IT & telecom has trended upward over the long term, while hospitality and food service has hit new lows across 30 years. This article reads the structural causes through industry-level data.
Neighborhood Ethnic Restaurants Are Disappearing — The ¥30 Million Capital Requirement for Business Manager Visas Tests Japan's Commitment to Multiculturalism
In October 2025, the capital requirement for the Business Manager visa was raised sixfold, from ¥5 million to ¥30 million. Approximately 96% of current visa holders fall short of this new threshold. Simultaneously, the Specified Skilled Worker category for the food service industry was suspended. This article examines the structural policy design that is causing Indian curry restaurants, Thai eateries, and Hong Kong-style congee shops to disappear from Japan's streets.
Why Don't Wages Rise Despite 'Labor Shortages'? — The Structure of a Labor Market Where Supply and Demand Fail
Labor-shortage bankruptcies are surging, yet wages remain stagnant. With 1.76 million job seekers registered at Hello Work and companies still claiming 'labor shortages,' this column analyzes the structural factors that prevent supply-demand principles from functioning in Japan's labor market.
The Paradox of Population Decline and Record Tax Revenue — How Much Has Per Capita Tax Burden Increased?
Japan's FY2026 tax revenue is projected at ¥83.7 trillion — a seventh consecutive record — while the population continues to decline. By visualizing per capita tax burden trends, this article examines the structure behind "record revenue yet fiscal strain."
Generational Pension Disparities Visualized by Birth Year — What Differs Between Those Born in 1940 and 2000
One estimate puts the benefit-to-contribution ratio at ~6x for those born in 1940; a separate study projects a net burden of ¥8.93 million for those born in 2000. These metrics differ in methodology, but the direction is clear. This article unpacks the historical causes of the intergenerational pension gap and the long-term impact of the macro-economic slide mechanism.
Is "Half Your Income Goes to Taxes" True? — The Reality Behind Japan's 46% National Burden Rate
Japan's 46.2% national burden rate does not mean half of take-home pay goes to taxes. For a worker earning 5 million yen, the effective burden is about 22%. The primary driver of rising burdens over 50 years is not consumption tax but social insurance premiums.
The Four Layers of "Stealth Tax Increases" — How the End of Flat-Rate Cuts, Rising Social Insurance, the Invoice System, and Defense Surtax Erode Take-Home Pay
The end of Japan's ¥40,000 flat-rate tax cut, rising social insurance premiums, the invoice system, and a new defense surtax — four mechanisms that avoid the word "tax increase" while steadily eroding disposable income. An analysis of the four-layer structure behind Japan's 46.2% national burden rate.
Structural Problems in Agriculture and Food Security——Reading the Meaning of 38% Self-Sufficiency
Analyzing the structural background of Japan's 38% food self-sufficiency rate. Tracing the chain from aging farmers to abandoned farmland to food security.
A 5-Million-Yen Salary in One Chart — Where ¥1.1M Goes, and How It Compares to 10 Years Ago
Take-home pay on a ¥5 million (approx. $33,000) annual salary is roughly ¥3.9 million. Where does the missing ¥1.1 million go? This article visualizes the breakdown — employee pension, health insurance, income tax, and resident tax — and traces how 'invisible deductions' have grown over the past 10 to 20 years, including the impact of the 2025 tax reform.
The Silent Erosion of Disposable Income — How Inflation and Rising Social Insurance Premiums Are Squeezing Household Finances in 2026
Real wages have declined four years in a row; the Engel coefficient has reached a 44-year high of 28.6%; the national burden rate stands at 46.2%. With rising prices and social insurance premiums advancing simultaneously in 2026, how is middle-class disposable income changing? This article reads through the three-layer structure of "invisible tax increases" using data from the Daiwa Institute of Research and the Dai-ichi Life Research Institute.
The Structure of Gasoline Double Taxation — The 'Tax on Tax' Problem That Persists After Provisional Rate Abolition
The provisional gasoline tax rate was abolished at the end of 2025, halving the gasoline tax to ¥28.7/L, but the double taxation structure — applying 10% consumption tax on top of gasoline taxes — remains untouched. Tracing 50 years of tax policy and the structural dynamics leading to the March 2026 subsidy restart.
Is ESG Investment Solving Social Issues? — Questioning the 'Additionality' of a $30 Trillion Market
ESG investment has reached $30.3 trillion, yet inter-agency rating correlation averages just 0.54. Evidence of real-world additionality remains limited.
Renewable Energy and the Regional Economy — New Inequalities Born of the Energy Transition
Analyzing regional disparities in renewable energy deployment and the structural impact on local economies. Reading the asymmetry of benefits and burdens.
The Economic Rationality of Preventive Medicine: Social Design in the Era of 48 Trillion Yen Healthcare Costs
Structural analysis of the cost-effectiveness of preventive medicine investment. Comparing healthcare expenditure breakdown and preventive ROI.
Can Climate Action and Economic Growth Coexist?
A simulation debate contrasting green growth theory with degrowth arguments. Examines whether Japan can achieve the Paris Agreement's 1.5°C target while sustaining economic growth, and whether transitioning away from GDP-dependent models is realistic.