Interesting But Expensive, Usury In Japan?
- Gerald "Mutu" Froehlich
- Aug 17, 2016
- 3 min read
So there we are again, traveling this beautiful Country for the First Time and watching our Purse empty faster than ever experienced before. Or you are living in Japan and struggle with too much Month left at the End of your Salary.
Are we just wasting it, indulging ourselves or what is going on here?
As everyone knows Japan is a very expensive Country to visit and live in, but why?Are the salaries here that high, that everyone is swimming in Money?
No, not really, contrary to popular believes, most Japanese Salaries are below the Level of some European Countries or even the USA. Actually the Salaries in Japan stagnated for the last 15 to 17 Years. With a Peak around 1998 to 2000, the average Salary in Japan decreased over the last few years.
Still, probably because it's an Island and many things need to be Imported, isn't it!?
Yes and No!
Japan needs to Import many Goods to sustain it, but that's just one Side of it.
Import Tax Regulations in Japan surely play a big Part, but not the Biggest!
One Problem is the way Imported Good are Taxed in Japan. It seems as if every Regulation for every Item was decided individually and without System.
On one Hand, Taxes for Food and other everyday Commodities like Clothing are rather high, while on the other Hand, Items that I would regard Luxury, got no Import Tax whatsoever.
You want to Import a Helicopter?
Good for You, no Import Tax in Japan.
A Car? Same here, no Import Tax.
But what about new Leather Shoes for Work......damn....30% tax, there you go.
So yeah there are some strange Regulations here. But still, that doesn't Explain why a Benz costs nearly double as much in Japan, than it does in Germany or even the USA.
The other Side are the Japanese themselves. Most People will tell you, that something cheap is no Good, and a expensive Restaurant has always more delicious tasting Food, than a cheap One. And this goes for most People here without ever questioning. Japanese love "Boxes", and i mean Brands for Items but also People,
you wear a certain Brand and you belong to the "Cool Box",
you are Blond and have Blue eyes, you are automatically in the "American Foreigner Non Japanese speaking Box", therefor the willingness to pay more is higher than in most other Countries.
But the last and most Important One, I would just plainly call it Profiteering, are the Japanese Companies.
As i did and do some Importing and Exporting myself, i got to talk to quite a few Companies that sell imported Goods in Japan. Most do so after gaining an exclusive Contract with a Foreign Maker, meaning only they are allowed to Import for Retail from the Maker into Japan or a certain Region in Japan.
This gives these Companies the Ability to dictate the Prices for these Goods.
And they do.....i mean, just a few weeks ago i talked to a Saleswoman for a Medical Equipment Company in Japan, they Import CT Scan Machinery. Costing roughly 100.000 US Dollar abroad, in Japan the same Item gets sold for about 450.000 US Dollar. Strange thing, no Import Tax there either.
Conclusion:
Japan is expensive, and i mean really expensive, especially for everyday Goods and Services. Reason being in many cases just the plain old Greed and the Opportunity to Implement it, as we are talking about a Country where it's not custom to ask Why and so most people rarely look beyond and question.
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