When the Bubble Economy Ended, Young Adults
Now Middle-Aged... Unable to Enjoy the Boom
"A Generation Bearing the Tragedy of Japan Inc."
There were young people who had just entered the workforce in the late 1990s, marking the beginning of a long economic recession after Japan's prolonged boom. Now in their 40s and 50s, this generation is still grappling alone with the shock of the 'bubble collapse.' Half of this generation owns assets worth less than 5 million yen (approximately 47 million KRW), making retirement preparation a distant dream.
The online edition of the Japanese business magazine President published a special feature on the 19th (local time) focusing on the current 40s and 50s generation who entered society from the late 1990s to the early 2000s. This 4050 generation is also known as the 'Ice Age Generation' or the 'Lost Generation.'
Japan experienced an unprecedented economic boom until the 1980s, with its gross domestic product (GDP) once reaching two-thirds that of the United States. However, the asset bubble that began at the peak of this boom caused an overheated economy known as the 'bubble economy,' which burst starting in the mid-1990s, causing massive damage. The Ice Age Generation refers to the young people who entered the workforce as the bubble economy ended and Japan entered the so-called 'Lost Decade.'
Those who were fresh workers at the time are now in their 40s and 50s, entering middle age. However, they are still considered the most economically unstable generation in Japan. The media warned, "The Ice Age Generation experiences slower wage increases compared to other generations, and this applies even to regular employees. Promotions are delayed, and their asset holdings are small. Their retirement poses significant concerns for the country's social security policies."
In fact, this generation absorbed many social problems during Japan's stagnation period. They suffered from severe employment difficulties, and as a reaction, the phenomenon of 'hikikomori' (socially withdrawn youth) first appeared among them.
Yet, even decades after the bubble collapse, the suffering of the Ice Age Generation continues. President points out that they have become a 'sandwiched generation.'
The elderly, who directly benefited from the economic boom, have already accumulated considerable assets. The current 2030 generation, treated as 'precious talent' due to ongoing aging, receives benefits from companies and the government alike. However, the 4050 generation is being left out.
The media stated, "Nearly half of the Ice Age Generation holds assets below 5 million yen. Their lives have been full of being trampled or kicked aside. It is no exaggeration to say they bear the tragedy of modern Japanese economic history on their shoulders."
However, there is a variable. Their political voice is expected to grow in the future. The Ice Age Generation is still much larger than other generations in Japan, and as they enter the elderly demographic, their power as a 'voting force' will become formidable.
Therefore, the media predicted, "The baton of the powerful elderly voting bloc will pass to the Ice Age Generation. They will face a crossroads: whether to exploit the younger generation in the same way the current elderly have exploited their juniors, or to break the cycle of exploitation that has been repeated so far."
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