Archive for the ‘Family matters’ Category

Are Japan’s public school teachers paid too much?

Monday, November 17th, 2014

Japanese teachers make more money than the world average, but they also work many more hours. (Photo by ajari CC by 2.0

Japanese teachers make more money than the world average, but they also work many more hours. (Photo by ajari CC by 2.0)

Last month the Ministry of Finance presented a policy recommendation based on studies made by an advisory group. Such recommendations are fairly common, but this one caught more than the usual amount of attention because of where it was directed.

The ministry thinks that the maximum class size for first year elementary school students should be increased from 35 to 40. In purely economic terms, such a change would result in a reduction of as many as 4,000 teachers, which would translate as ¥8.6 billion in savings for the central government alone. However, the ministry’s explanation for why the change should be implemented was not made in fiscal terms. It was made in educational terms.

Until the Democratic Party of Japan became the ruling party, maximum class size was 40, and the DPJ changed it to 35 in order to address the bullying problem. But the finance ministry says that bullying incidents have increased slightly since class sizes were reduced, so obviously it has had no effect.

Obviously, this sounds more like something the education ministry should tackle, and, predictably, the education ministry objects to the recommendation, saying that increasing class number back to 40 runs counter to world trends, which favor smaller class sizes so that students can get more individual attention from teachers.

The finance ministry has countered the objection by saying that the money saved by increasing class size can be spent on “pre-schoolers,” since the education ministry is now promoting tuition-free pre-schools for some households but have no budget for it.

As several other media have pointed out, the finance ministry isn’t really interested in education programs. It is simply moving the money from one area to another. It’s a matter of bookkeeping.

The ministry’s justification for cutting teachers is also problematic. It says that Japanese public school teachers’ salaries are higher than they are in other countries, which is a conveniently misleading truth. The salary of a median age 45-year-old full-time public school teacher in Japan is about ¥7 million, though a 2010 OECD survey found that Japanese teachers made on average the equivalent of $44,337 a year, which is $7,000 more than the OECD average. That’s probably what the finance ministry is talking about.

What the ministry doesn’t mention is that this average salary was 8.6 percent less than it was in 2000, which is perhaps a reflection of the fact that more teachers are now non-regular part-timers. Moreover, as a percentage of total public spending on education, teachers’ pay in Japan is higher than it is in other developed countries — 86 percent compared to 81 percent in the U.S. and 67 percent in the U.K. — and as a portion of GDP Japan’s spending on education is the lowest of the 31 OECD countries, and has been for five years running.

But the most significant statistic is work load. The average number of hours worked by a teacher in OECD countries is 39 a week, 20 of which are spent actually teaching. In Japan it’s 52 and 19, respectively. Also, unlike in the U.S., where teachers can get two months off due to summer vacation, Japanese teachers have no time off other than mandatory paid vacation, which means when school is out they are required to show up for work. And Japanese public school teachers do not get paid overtime.

Consequently, the finance ministry’s various justifications for increasing class size seems disingenuous, but they will probably play well with local governments, which pay two-thirds of education costs and stand to save more if class sizes are increased. However, it should be noted that in the larger scheme of things, class size reduction was never much of a policy.

The DPJ wanted to reduce class sizes for all grades of elementary and junior high school, but it became fiscally and politically unfeasible, and so they limited the decrease to only Grade 1, with the hope that later they could extend it to upper grades. But then the Liberal Democratic Party regained power.

As the Asahi Shimbun pointed out in an editorial, the policy has only been in place for three years, so it’s too early to judge its effects, either on bullying or on the quality of education in general. Since enrollment is dropping, the number of teachers will also naturally drop due to attrition. Basically, the finance ministry wants to cut expenditures and sees education as the easiest way to do it by resorting to “bureaucratic hocus-pocus,” as one part-time teacher put it in a letter to Tokyo Shimbun.

The case for a higher consumption tax

Tuesday, November 4th, 2014

Big needs: Should daily necessities by exempt from the consumption tax?

Big needs: Should daily necessities by exempt from the consumption tax?

Right now the government is fretting over whether or not to raise the consumption tax to its planned level of 10 percent in October of next year. For a while it seemed like a sure thing, but the drop in demand that accompanied the most recent hike to 8 percent in April, coupled with less inflation than the administration and the Bank of Japan had hoped for, has put the plan into doubt. The fear is that another boost in the tax will send the economy into a recessionary tailspin.

Akira Sugawara, a high school teacher who has published an economics primer for businessmen, recently wrote a simple, easy-to-understand polemic in favor of raising the tax for the online version of the business magazine Toyo Keizai. In line with his mission to explain economic principles to people who don’t have a strong grasp of basics, Sugawara starts out by explaining what the consumption tax is supposed to do, rather than what it is actually doing.

Originally, the purpose of the tax was to bolster social security in the face of a rapidly aging society, and though so far revenues from the tax have been used to pay off Japan’s massive debt, Sugawara still thinks social security should be prioritized when discussing the consumption tax.

CONTINUE READING about higher consumption tax →

Mail order scofflaws are the exception that proves the rule

Monday, September 15th, 2014

The gods know if you're honest: An unmanned farm stand in Inzai

The gods know if you’re honest: An unmanned farm stand in Inzai

A recent article in the Asahi Shimbun described a small cross section of consumers who take advantage of a peculiar aspect of mail-order sales in Japan. Some small- and medium-sized sales agents who do their business over the Internet have problems with customers who don’t pay. In most cases, Internet and mail order sales are done on a prepaid basis: The buyer either provides credit/debit card information or makes a bank/post office money transfer prior to the item being shipped. But a few work on what can best be described as the honor system. They send the item to the buyer with a bill that the buyer pays after receiving the item. Sometimes the bill has a handling fee attached and sometimes it doesn’t.

According to the Asahi article, some people don’t pay up, and perhaps never intended to. A non-profit organization called the Mail Order Unpaid Protection Network (MOUPN), which monitors such scofflaws, estimates that mail-order sales companies lose about ¥20 billion a year to such people.

Asahi, in fact, found one, though he seems reluctant to admit it. In the article, a reporter visits an unnamed man “in his 50s living in an apartment in Tokyo.” The man receives an order of green tea by courier, but the reporter notes that the name on the package is that of a woman. “I made the order on behalf of a friend,” the man explains. When asked why he didn’t use his real name, the man doesn’t answer. Other packages arrive addressed to different women. When asked what’s in one of them the man shrugs and says, “Maybe food?” He insists that he will pay for it but usually “just forgets.”

CONTINUE READING about abuse of Japan's honor system

Golden Week activity influenced more by logistics than by economics

Saturday, May 3rd, 2014

Too late to stop now: Travel brochures for Okinawa and Hokkaido

Too late to stop now: Travel brochures for Okinawa and Hokkaido

This year’s Golden Week holiday isn’t as golden as it normally is owing to the way the national holidays that make it possible fall in relation to the days of the week. Showa no hi (the Showa Emperor’s birthday) was on a Tuesday and Constitution Day on a Saturday, so there was enough time between them for people to work, which means they didn’t get those days off. That left a measly 4-day weekend to get all the things people usually do during Golden Week done — like visit their home towns — and the truncated time period meant more highway congestion in a shorter time span, which the media treats with such predictable urgency every year that it has become something of cultural touchstone. In any case, all that gasoline wasted in 45-km traffic jams and constant stops at expressway service areas doesn’t make up economically for the money lost during the reduced holiday.

The Japan Travel Bureau declared that the Golden Week holiday started on April 25 and ended May 6, despite the fact that, for the first half of that period, schools weren’t closed the whole time so it wasn’t a bona fide “break” for families with children, regardless of whether or not dad had to work.

According to a JTB survey of 1,200 people who presumably already knew what they were going to spend over the holiday, the amount expended per person for those who planned to travel domestically was ¥34,400, or 4.2 percent less than last year. For overseas travelers the amount was ¥249,500, which represents an increase of 8.1 percent. The peak days for domestic departures were May 3-4, and for foreign departures May 2-3, thus proving that the first half of the holiday was virtually meaningless. This concentration of recreation into such a short period will likely spawn even more post-GW stories than usual on the spike in attendant divorces and job resignations.

CONTINUE READING about Golden Week 2014 →

Call the sitter: Parents resort to online services out of economic necessity

Monday, March 31st, 2014

Public daycare center closed for the day

Public daycare center closed for the day

A few weeks ago news outlets were all over a story about the death of an infant who had been placed in the care of a young freelance babysitter. The media was quick to blame the mother, at least by implication, since she had found the man through an Internet portal site that matched people who needed babysitters with people who provided such services. Many of these providers seem to be unlicensed, but babysitting as a job description is relatively new to Japan.

What seemed unusual in this case — though it’s actually quite common — is that the two boys the mother left with the man were watched at the man’s apartment in Saitama Prefecture, rather than at the woman’s residence in Yokohama, which is normally the way babysitting works. In the woman’s defense, some media pointed out that she had used the man as a babysitter previously and didn’t trust him, but because he used a different name this time she wasn’t aware she was leaving her children in his care.

However irresponsible the woman was in this situation, the fact is that there is an increasing number of parents who rely on such services. The Internet portal site that the woman used has 10,000 registered users and 6,000 registered sitters. The paucity of daycare services in Japan is a well-covered issue, and some parents can’t wait for the government or the private sector to rectify the situation, especially if they have infants and toddlers, which conventional daycare centers don’t usually accept anyway.

CONTINUE READING about childcare portal sites →

Consumption tax rush approaching peak time

Tuesday, February 18th, 2014

Curb your enthusiasm: Don't rush out and buy an aircon to beat the tax hike since it will probably be cheaper afterwards anyway

Curb your enthusiasm: Don’t rush out and buy an aircon to beat the tax hike since it will probably be cheaper afterwards anyway

Retailers continue to enjoy good business in the runup to the consumption tax hike on April 1, but some are a bit anxious that consumers may not understand the situation sufficiently. Tokyo Shimbun visited a few Tokyo department stores where the rush to buy is especially intense, causing them to post clarifying announcements to head off any attendant disappointment.

At Isetan, these notices are posted prominently in the furniture and bedding sections, as well as the eyeglass section, meaning departments where people order merchandise and then take delivery later. As one Isetan employee explained to the paper, the consumption tax is applied on the day of receipt of merchandise, not on the day it was ordered or even on the day it was paid for. A good portion of department store sales are order-made products, and the notices are cautioning customers to make sure they understand the date their stuff will be ready to pick up, otherwise they may end up paying more than they thought they would.

Keio department store is telling all its customers about the rule so that “there is no misunderstanding.” Daimaru Matsuzaka, near Tokyo Station, has seen sales of order-made men’s suits climb to 14.4 percent higher than last year, a new record, but the closer they get to March the more nervous they are since some suits take longer to make than others. Takashimaya in Nihonbashi is apparently the most conscientious department store, posting very detailed explanations in all its sections that insist the earlier you order something, the more likely it will be you can avoid the extra 3 percent charge.

However, a related article in the weekly Aera says that consumers shouldn’t worry that much, since there’s a good chance people will buy something now to avoid the tax hike only to end up paying more. Some retailers are not as straightforward as the above-mentioned department stores, using the rush as a means of getting customers to sign up for credit cards in order to compound their savings without realizing that in the end they’ll probably have to pay handling fees that will negate such savings, unless they happen to be frequent patrons of the store, in which case they probably already have a card. The magazine interviewed a few housewives who plan to make big purchases ahead of the tax hike.

One woman says she is going to buy all new household appliances, while another in her early 30s will buy baby shower and wedding gifts for friends who will celebrate these happy events in the near future, but as she said, “often these gifts go on sale in July, so I don’t know if I’m actually saving money by buying them now.”

A financial planner told Aera that it may be a mistake to buy some big ticket items now. Air conditioner sales, for instance, tend to be their lowest in March, which is between the cold and the hot seasons. That’s also when manufacturers put out new models, which means last year models will be quite cheap, so he advises to wait. Even after April 1, the price could be considerably less than they are now, even taking the tax hike into consideration. But automobiles and home improvement work, he says, should be ordered right now, if it already isn’t too late, because they require time before final delivery and there are no bargain sales associated with either. For mini-cars (kei jidosha), in particular, now is the time to buy since next year the car tax for buying one will increase by 50 percent.

In the end, here are items that Aera recommends buying now to beat the tax: household appliances; over-the-counter drugs that can be stored for long periods, like aspirin; gold, since the purchaser can buy at a lower tax rate and sell at a higher one; theme park tickets; long-term commuting passes and train tickets in bulk (kaisuken).

Items that Aera doesn’t recommend buying now: PCs and TVs, because they always go on sale; apparel and accessories, which tend to be much cheaper during semiannual bargain sales; real estate and stocks; gems and platinum, which, unlike gold, are more vulnerable to price fluctuations; and everyday necessities like toilet paper, which people all over the world tend to buy up whenever there is some sort of financial panic.

When will they learn: Old folks still falling for swindlers

Tuesday, February 4th, 2014

Bank flyer from Chiba police warning about telephone swindlers.

Bank flyer from Chiba police warning about telephone swindlers.

On Jan. 23, the Chiba prefectural police announced that in 2013 there 724 reported cases of telephone swindling targeting older people, a phenomenon that is still referred to as ore-ore sagi (literally, “it’s me, it’s me” swindles) though the modus operandi of the perpetrators have changed since it first became topical some years ago.

Originally, swindlers pretended to be members of the intended victim’s family and feigned some sort of trouble that required large sums of money to rectify, in which case the target was instructed to transfer the money to a specific bank account. Some media also call this crime furikomi sagi (bank transfer swindling).

Despite lots of publicity regarding this type of crime, swindlers are getting bolder. In 90 percent of the cases reported in Chiba, the swindler or an agent went to the home of the victim and either picked up the cash directly or, even more amazingly, picked up the victim’s ATM card and then withdrew the money himself.

Obviously, these persons weren’t impersonating a relative, which is why the media have yet to come up with a new memorable term. In many cases the swindler pretends to be a government official offering a tax refund or something similar and then acquires the card to carry out the transaction.

In others the swindler pretends to be a securities person with a can’t-miss deal that will make the person lots of money, and while this an old scam, what’s new about it is that the scammer actually shows up to collect the cash for the investment in person. Another new wrinkle in the swindle is using convenience store ATMs, since banks have become wise to the fraud and have installed security cameras and other devices to catch swindlers in the act.

Though the number of cases hasn’t increased appreciably the amount of money swindled has: ¥460 million, a new record for Chiba. That averages out to about ¥3.2 million per successful swindle. In 78 cases, the amount swindled was over ¥10 million. Nationwide the trend is the same.

As of the end of October the amounts swindled totalled ¥38.3 billion and analysts predicted the damage might go as high as ¥42 billion for the year. The total amount in 2012 was ¥38 billion. On the relative plus side Chiba police made 129 arrests of swindlers.

The police are understandably frustrated by the fact that their PR efforts have’t really had any effect, and have told the elderly public just to “not answer the phone,” which is possible to do since everyone has voice mail, even old folks. They advise to listen to the messages and then decide in a cool manner whether or not the caller is legitimate, which sounds like sensible advice, but then avoiding such scams in the past didn’t sound that difficult either, but apparently it was.

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