Interview with Ms. D2

"What strikes me most about Japanese society is how much the economy shapes people’s attitude toward work. For many young Japanese, the effort just doesn’t seem worth it. Japan’s tax and welfare system flattens incomes: once you reach the middle class, whether you work extra hard or not, your take-home pay barely changes. High welfare also cushions those who don’t push themselves, so the gap between working hard and doing the bare minimum feels small.

On top of that, the corporate structure emphasizes seniority over merit. Promotions often depend less on performance and more on age and waiting your turn. Even the most talented young employee has to sit in the same role for years before moving up, as long as the older generation stays in place. With an aging population, the positions at the top remain blocked, and younger people see little room for advancement.

This creates a culture where many simply accept stability rather than ambition. They know they won’t lose their jobs — Japan’s system almost guarantees employment — but they also know they won’t see significant gains. So they “lie flat,” doing enough to get by without exhausting themselves for rewards that will never really come.

Looking forward, I think this is a serious challenge for Japan. Emerging industries like AI or renewable energy struggle to take root because the ecosystem isn’t there — not enough talent, not enough educational focus, and too much protection of existing industries. Trade associations, like the powerful agricultural cooperatives, also resist change, keeping prices high and imports restricted. It’s a cycle: without new industries, education doesn’t adjust; without education, there’s no talent; without talent, the industries can’t grow. That’s how Japan risks falling further behind, even as other countries surge ahead."