economy [Breaking the Limits] The True Nature of the “Reiwa-Era Hardship” Plaguing Japan—The Day Thrift Became a Survival Strategy
Why doesn’t life get any easier even when wages rise? Drawing on statistics from the Ministry of Internal Affairs and Communications and Teikoku Databank, we uncover the reality of the “structural inflation” plaguing Japan. We provide a detailed explanation of the rising Engel coefficient—which is squeezing food budgets—companies’ low rate of passing on price increases, and the mechanism of “hidden tax hikes” that are eroding household finances. We delve into the essence of the economic hardships facing modern Japan—problems that cannot be solved by mere efforts to save money.