An insight into Japan's economic&social problems

In Japan these days, certain towns are becoming healthy and lively once more. The economy is recovering at a rapid pace, and urban buildings and structures are being built for accomodation and recreation, even aesthetic appreciation. Huge SUVs plague the tiny roads of Japan, ferrying the rich to their destinations of fun and enjoyment. The 54 storey tokyo midtown complex has been built, featuring another major attraction, an arts museum inside the tallest skyscraper, coupled with a newly built Ritz-Carlton hotel, makes the capital an advanced modern city oozing with tourist attractions and potential revenue. On the other hand, the armpits of Japan, including bankrupt cities like Yubari, reflect the hazardous lack of vision of Japanese Prime minister Shinzo Abe in his governing methods. He is unable to promptly and decisively nip the problems in the bud, which include the widening social disparity in terms of financial status, the economic insecurity foraging through the cities of Japan, as well as the aging workforce, snowballing debt owing other countries, additionally external competition such as China and U.S. However, the most essential problem lies in the political status of Abe, as he is unable to solve these serious problems leeching the country of prosperity and social satisfaction, henceforth he has brought in pesty critics who have questioned his decisions and have striked at every opportunity to bring him down lest a mistake of great proportion occurs that could spell disbenefit for the citizen's welfare, which Abe seems to have neglected. These problems would spell the downfall of Japan's economy.
One reason is that there is a greater disparity between the lower and higher classes of society despite Japan hailing itself as a largely middle class country. This is because the income levels between the 2 groups are widening apart, as the rich get richer and the poor get poorer, the economy is affected adversely. The economy of Japan is shooting sky high, with annual GDP rising from 0.1% in 2001 to 2.7% in 2006. The corporate profits of Japanese companies have reached a record 428 billion, accompanied by a seemingly impressive low 4.1% unemployment rate. However, the average monthly earnings of Japanese decrease instead from $2881 in 2002 to a more meagre $2749 in 2006. The consumer-confidence index is erratic and public anxiety soars to a 67.6% of all Japanese. The former's standard of living is decreasing, or so they reckon. This trend exists due to the selfish desire for money of the leaders of such thriving corporations, hence they keep more of the profits for themselves, rather than distribute it throughout the company by increasing wages. Stagnant wages result, and as confidence in the country's economy plunge, people are less willing to spend on products and services that Japan or any economy relies on to keep it going. With less profits, the companies and firms suffer losses, hence the economy declines generally. Poverty, an extreme case of wage decrement consequence, presently plagues the country to such an extent that it ranks 2nd behind the U.S in terms of relative poverty. This threatens the sustainability of economic prosperity, and will eventually lead to a bankrupt country as in the case of Yubari, especially coupled with other head-throbbing problems such as huge debts.
Unfortunately, Japan has such a problem. She has obtained much loans from other countries for her own benefit to build up her economy and for development. Her debts amount to a staggering 175.5% of its annual total GDP, making it the country to be most in the red. With such a huge snowballing debt robbing the country of its revenue, less of it can be allocated to solve other social and economic problems such as educational system loopholes, as well as the former social insecurity issue. As such a huge debt cannot be cleared in a short period, it remains a parasite to Japan's economy, leeching away its prosperity, additionally and in turn worsening living standards of the citizens by further reducing wage rates. This worsens the economy further like a vicious cycle since people are poorer, they spend less. Abe's plitical status might then be in serious jeopardy.
Similarly to the context of Singapore, Japan is heavily reliant on trade with other countries. This means that imports and exports of products and revenue earned from such processes comprises a huge proportion of the country's revenue. Such countries include mainly U.S and China, as them, being the strongest developed superpowers presently, have a higher demand of Japanese goods. However, when diplomatic relations falter or sour, such as with China, Japan cannot rely on domestic consumer spending which is so feeble in supporting the economy with the above stated problems. The economy will face serious setbacks when it cannot fall back on foreign countries, and with people knowing that, they have less faith in the economy as well as Abe's leadership. This not only puts the economy of Japan in the hands of outsiders, it also endangers its prosperity depending on Japan's relations with other countries. Japan's entertaining abilities come in handy in such situations, making the country seem inferior and reliant.
The aging population, the bane of many economies, also threatens Japanese economy. This is due to the fact that when a workforce ages, elder members are seen to be less productive due to physical restrains as well as outdated knowledge in terms of skills and essential requirements. For instance, Japan's workforce is estimated to drop form a present 66million to a paltry 55 million in 2035. This is due modern thinking and poverty. People have less money to provide for children, and more women seeking equality, reject the idea of being a housewife, but would rather carve out an impressive career. Hence as less babies are born, less people are able to replace the retired members of the workforce. The latter shrinks and is forced to consist more of the elderly. Coupled with Japanese low mortality rate due to healthy eating habits, more senior citizens would live to a riper, older age so as to burden the economy further when the latter is faced with the challenge to support these senior citizens. The productivity and power of the workforce decreases as it ages, hence the economy produces less products and exports in terms of rate, the former suffers as less revenue is earned. Reiterating, people's lives deteriorate, and political faith in Abe decreases.
Last but not least, the political problems arising from Shinzo's ineffective leadership is the most quinessential in the equation which spells disaster for Japan. It is seen that he lacks a vision for Japan. His ability to reassure his citizens of economic stability clashes with economic realities, and most people know it. His solutions to the country's problems either backfire or lack prompt action to carry out, though a stable foundation has been laid for its implementation. Such examples include his party member's urge for a higher birth rate, incidentally yet disrespectfully refering Japanese women as 'birth-machines', angering the people and critics, who seize the chance to pinpoint faults in Abe's leadership. His economic plan for development, such as 'Innovation 25' to be implemented in 2025, which emphasizes R&D, lack serious action to implement. Despite his success with dealing with foreign affairs, it has not convinced Japan that Abe will be the new leader to lead Japan into an era of prosperity, since he cannot decisively and swiftly eliminate problems plagueing the country. It should occur to him to either buck up, or ship out of politics.