Is Japan Sinking into Reality? "The Wealthy Have Begun Abandoning Japan"

Japanese Leading Economic Weekly: "Wealthy Class Moving Assets Overseas"

Japan strengthens COVID-19 prevention measures in three prefectures including Okinawa.
[Source=Yonhap News]

[Asia Economy Reporter Yoon Seul-gi] Suzuki Takahisa, deputy editor-in-chief of Japan's leading economic weekly magazine "Shukan (Weekly) Diamond," pointed out the problems in Japan revealed by the large-scale COVID-19 pandemic and expressed concerns about the "decline of Japan."

In the latest issue dated January 15, Deputy Editor Suzuki published a special article titled "The Wealthy Class Starting to Abandon Japan... The Sevenfold Hardships Striking a Declining Japan."

Deputy Editor Suzuki stated, "Japan's international standing is declining in various aspects such as economic growth rate, stock price increase rate, educational environment, yen purchasing power, and fiscal soundness," and added, "People sensitive to information, including the wealthy class, have begun to abandon such Japan."

He continued, "(The wealthy class) physically remain in Japan but are accelerating the flight of their assets overseas," and warned, "If we fail to recognize the crisis and take action, we may end up participating in the 'sinking of Japan.'"

Japanese economic weekly magazine 'Shukan (Weekly) Diamond'

Regarding the popularity of content praising Japan within the country, Deputy Editor Suzuki explained, "This is evidence that Japanese people are losing confidence in themselves on the global stage." He added, "However, we cannot indulge in the boom of Japan admiration because we face the reality of 'Japan sinking.' The mirror reflecting the current Japan was the COVID-19 crisis," and argued, "Confusion over government subsidies, workplace environments where remote work is impossible, and the bare face of a 'digital underdeveloped country' were fully exposed. Japan is now being sunk by 'sevenfold hardships.'"

He cited excessive expansion of fiscal spending, the public's withdrawal from the Japanese stock market, and a backward educational environment as part of the "sevenfold hardships."

Deputy Editor Suzuki also criticized Japan's slow economic recovery. He said, "Japan is significantly lagging behind other countries in economic recovery," and argued, "Despite having the worst national debt relative to GDP in the world, Japan's economic recovery is so weak that it must continue expanding fiscal spending."

He further warned, "People sensitive to information, including the wealthy class, are accelerating overseas investments and abandoning Japan even amid movement restrictions caused by COVID-19. Now is the time to face reality, or else one may become a companion to Japan's sinking."

The article also touched on Japan's situation as an "educational underdeveloped country." According to the article, in the 2018 international academic achievement assessment (PISA2018) conducted by the Organisation for Economic Co-operation and Development (OECD) targeting 15-year-old students in 72 countries and regions worldwide, Japan scored below the overall average in most categories, including internet and computer usage.