Posts Tagged ‘low income families’

Consumer stimulus is not the same as welfare, though the purpose is the same

Monday, December 29th, 2014

Screen shot from Toyonaka, Osaka Prefecture, city office home page informing residents that the deadline for the one-time welfare handout is Jan. 5.

Screen grab from Toyonaka, Osaka Prefecture, city office home page informing residents that the deadline for the one-time welfare handout is Jan. 5.

Last weekend the cabinet of Prime Minister Shinzo Abe reemerged from its victory lap to approve an economic stimulus package worth ¥3.5 trillion whose purpose is to help rural areas cope with inflation brought on by last April’s consumption tax hike, not to mention the more recent drop in the yen’s value, which has made imported goods more expensive. Some of the money will go to local infrastructure projects, mainly in the area of disaster prevention, and a little less will go directly to consumers and companies.

This handout, however, shouldn’t be confused with the one that the government implemented last summer for poor people, though there will be overlap. In fact, some local governments, which administer the one-time welfare handouts (rinji kyufukin), are still looking for eligible people since many residents who aren’t on their welfare roles nevertheless are qualified to receive the money. So far, about 24 million have received the handout.

The only real difference between the welfare handout and the stimulus handout is the ostensible purpose: the former was designed to help low income people adjust to the CT hike, while the latter is a means of getting more money into the distribution system, but in the end the government wants the same thing: higher consumption, which is why the stimulus handout will likely be in the form of a coupon that can only be spent on goods and services. That isn’t necessary with low income people, who by necessity spend everything they get on goods and services.

CONTINUE READING about consumer stimulus →

Are poorer families succumbing to the American lifestyle?

Friday, February 3rd, 2012

Big in Japan (Kyodo photo)

We’re not sure why this is coming out right now, but Sankei Express is reporting the results of a survey conducted in November 2010 by the Health, Welfare and Labor Ministry on the correlation between income level and lifestyle. The ministry divided respondents into three different groups according to household income: ¥2 million a year or less, between ¥2 million and ¥6 million, and over ¥6 million. The survey found that smoking was more prevalent the lower the annual income among both men and women. About 27 percent of men and 7 percent of women in the highest income group smoked, while 37 percent of men and 12 percent of women in the lowest income group did. Nationally, 32 percent of men and 8 percent of women smoke in all income categories.

In terms of being overweight, which the survey defined as having a BMI (body mass index) of over 25, there was found to be no significant difference between men among the three income groups, but among women the difference was stark. About 13 percent of the women in the highest income group were overweight, and the portion rose to 25.6 percent for women in the lowest group. Also, people of both genders in the lowest income group eat less vegetables regularly than people in higher income brackets, and low-income men tend to not eat breakfast.

If this doesn’t seem surprising it may be due to the fact that in the United States and the United Kingdom it’s been known for years that lower income people have poorer diets, higher rates of obesity, and smoke more than richer people do. Without going into why that is, it seems Japan is catching up with this trend, thus further undermining one of the country’s most beloved self-images of being a classless — or, more precisely, a uniformly middle class — society. If the trend continues along with the recession, it could mean even more of a crisis for social insurance schemes since it can be expected that more people will require health services in the future.


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