Amid the House of Representatives election, Prime Minister Takaichi’s remarks on yen depreciation are causing ripples.
Her statement that “the Foreign Exchange Fund Special Account is in a rosy state”—a positive characterization of unrealized gains from yen weakness—was interpreted by the market as “acceptance of yen depreciation.”
However, while the nation’s books are swelling, the “high prices caused by the weak yen” are relentlessly squeezing people’s livelihoods.
Particularly severe is the situation for struggling households raising children in their formative years.
In Japan’s past, “poverty” mainly referred to “relative poverty” – low income compared to others. Today, however, “absolute poverty” – where even the basic necessities of survival like food, clothing, and shelter are precarious – is spreading right next door to us.
The Reality of “Children Who Can’t Eat” Revealed by Data
The latest survey results (2025) released by local governments and support organizations highlight a reality far harsher than the statistical figures suggest.
1. Okinawa and Setagaya: Food Insecurity Spreading Regardless of Region
Even in Tokyo’s Setagaya Ward, often perceived as a “wealthy municipality,” the reality of poverty is severe.
- Okinawa Prefecture (May 2025 Survey)
The number of impoverished households experiencing difficulty purchasing food has increased.
This trend is particularly pronounced among first-grade elementary school students and second-grade junior high school students, with a significant increase of approximately 10 percentage points among second-grade junior high students. - etagaya Ward (March 2025 survey)
Among the general population, 0.0% reported experiencing food insecurity “often or sometimes,” but this figure reached 38.2% among the impoverished.
2. Distress Calls from the Field: An Abnormal Situation Where Even Rice Is Unaffordable
Surveys by certified NPO Kids Door and Save the Children Japan (2025) report even more dire conditions.
- Normalization of Food Restrictions
Approximately 49% of impoverished households reported that “children’s meals have decreased” or “nutritional balance has worsened.” - Aftermath of the “Reiwa Rice Riots”
Due to soaring rice prices since 2024, over half of households now consume insufficient rice.
It has become commonplace for families to dip into savings and even take out loans to afford rice. - Emerging Health Hazards
Over 90% cannot afford adequate food due to high prices, raising serious concerns about health impacts such as children’s weight loss and diminished concentration.
The precarious survival behind the “smiling faces” of yen weakness
The fact that the Foreign Exchange Special Account is thriving is, conversely, synonymous with citizens being forced to endure a de facto tax hike due to rising prices caused by increased import costs.
Behind the profits Prime Minister Takaichi described as “smiling faces,” children in impoverished households are surviving in a situation where they are “barely scraping by” due to the weak yen.
arents skip meals, giving their children the meager leftovers. Even then, it’s not enough, and they go to sleep hungry.
Such situations are no longer “special cases” in Japan today.
Economic Losses at 40 Trillion Yen? Child Poverty is a “National Crisis”
Neglecting child poverty is not only a humanitarian issue but also a “negative investment” that leads to the decline of Japan itself as a nation.
- Human Capital Loss
Children deprived of energy and stamina due to malnutrition lose opportunities to learn and hope for the future.
The situation where individuals who should be able to contribute to society cannot even reach the starting line represents a massive loss for the nation. - The 40 Trillion Yen Impact
According to estimates released by the Nippon Foundation in 2016, the social cost of neglecting child poverty is projected to reach approximately 40 trillion yen.
In advanced nations, combating child poverty is prioritized not as “welfare” but as “human capital investment” for the nation’s future.
Summary: Now is the time to channel “national wealth” to children
Prime Minister Takaichi, known as a policy expert, must listen not only to the figures of the Foreign Exchange Special Account’s “unrealized gains,” but also to the voices of struggling parents and children facing despair behind those numbers.
If profits have been gained from the weak yen, rather than simply accumulating them, shouldn’t we boldly redirect them now to cash payments, food assistance, and educational support for children struggling in “absolute poverty”?
Telling a hungry child to “work hard in the future” is cruel.
First, we must create an environment where they can eat today’s meal with peace of mind.
That is the most certain and effective investment to prevent Japan’s decline.
