Why You Should Go to Japan RIGHT NOW and How It Will Help Its Military
Tell Your Parents to Book the Trip to Japan
K. J. Ma
THE YEN HAS CONTINUED TO PLUMMET to a near four-decade low against the US dollar. At the end of 2023, two-quarters of Japan’s economy had shrunk which typically indicates the beginning of a technical recession. However, the recession had been narrowly skimmed through a 0.4% increase in the nation’s gross domestic product (GDP) when compared to the previous year. So what does this mean for the nation?
The collapse of the yen completely undermines the country’s plan for its biggest post-war military buildup. Japan had slashed orders for aircraft and the officials warn that further cost-cutting metrics would need to be implemented.
“What we are achieving in terms of actual defence capabilities and our original target — the two are not lined up,” Satoshi Morimoto, a former Japanese defence minister, said in an interview. The value of the defence budget over five years “has effectively been reduced by 30 percent,” Mr Morimoto said.
The yen’s depreciating value is a large headache for Japan, as the worry stems from the country’s ambitious goal of boosting military spending; in hopes of fortifying the defences of Tokyo amidst the possibility of a potential China-Taiwan conflict.
In 2022, Prime Minister Fumio Kishida of Japan announced a new national security strategy that would more than double the amount set aside for defence. The budget of 43 trillion yen over five years, equivalent to around $319 billion at the time, would help Japan deter attacks by giving it the ability to target bases in enemy territory.
Source: Shows depreciation of yen in comparison to the dollar
The depreciation of the yen, however, has significantly affected these plans. With the yen’s value plummeting, the cost of importing military equipment and technology from abroad has surged, thereby slashing the effective purchasing power of Japan’s defence budget. This has forced the Japanese government to reconsider its defence procurement strategies, potentially delaying or cancelling key acquisitions.
Additionally, Japan’s domestic arms industry faces challenges as the cost of raw materials and components, often sourced from overseas, has risen. This situation exacerbates the financial strain on the defence budget, making it difficult to maintain the planned scale and pace of the military buildup.
The broader implications of the yen’s depreciation extend beyond only defence. It also affects Japan’s economic stability, consumer purchasing power, and international trade dynamics.
So, what can you do to help?
- Tell your parents to plan a holiday to Japan
- Go to Japan and spend money (you will get more out of your dollar!).
- Tell your friends to also go to Japan and spend money!
- Rinse and repeat until you have single-handedly boosted Japan’s economy.