Japan Is Shockingly cheap【BLOG】millionmile consulting

I was in Japan for 2 weeks lately.

Working on weekdays,
walking around on weekends.

Cheap & Fantastic Yakitori Restaurant

We dropped by one yakitori restaurant.
My first visit there was fantastic!

Firstly, the foods were too great.
Yakitori,
sashimi,
pork ribs meal,
and Japanese Sake.
Secondly, unbelievably cheap.
Following this, its good feeling style.
Finally, their service was just perfect.

Also available in Singapore?
No.
Even if there were,
it would probably cost 50,000 JPN/person.
Recently, ‘’PPP’’ has been considered when tanking about exchange rates.

PPP (Purchasing Power Parity)

So, what are PPPs anyway?

OECD states that,
PPPs are simply price relatives.
This shows the ratio of the prices in national currencies of the same good or service in different countries.

For example, as of November 2022,
Pricing Comparison
Price of Big Mac NYC: Japan = 2: 1
Amazon Prime NYC: Japan = 5: 1
Ramen NYC: Japan = 4: 1
Fantastic Yakitori place NYC: Japan = 5? 1

Cheap Japan

I had been considering two things.

➊　Why did Japan turned out to be such a cheap country?

‘’Lifetime Employment System’’ is one of the causes.

Professor of Columbia University,
Takatoshi Ito explains.
▷Japanese in their 40s and 50s aren’t productive beyond their salary.
50s are on the defensive. They are ready for the last big paycheck. They don’t seek challenges.
Thus, productivity is not increasing. Japan’s financial crisis is only being postponed.
▷If salaries were paid at an earlier stage,
Higher productivity.
Higher salaries,
Rise in the consumer price index.
we can expect such things.

➋　Japan might be a best choice for investment.

“Too cheap” Japan is best choice for investment.
Its estate is already experiencing a surge in demand from foreign buyers.
Furthermore,
it is the best place to start a business.
The banking system is in place.
Business standards are well established.

My Thoughts and Feelings

“The Imperial Palace in Japan cost equally with California.
Mortgaged real-estate in Tokyo. Then, you could buy all the land in US.”
This was commonly said during the peak of a financial bubble around 1990.

Is Japan really “too cheap”?
No way.

Come on, cheer up Japan.

Masahiko KUMADA

＜English Blog＞Letters for Investing Mates
<LinkedIn> MAC (Masahiko) KUMADA