No.0125：Depreciation of the Yen - Pride

April 30,2024

With the Golden Week holiday starting and some free time on my hands, I went out to look at foreign-made campervans that could be used as a mobile office. The reason I’m interested in foreign-made ones is that I’ve always felt a certain sophistication in the living spaces of vehicles produced in countries with a culture of driving to favorite spots and enjoying holidays while staying in the vehicle. However, due to the recent depreciation of the yen, the shop owner was lamenting the incredible cost of importing these vehicles. Yesterday, the yen fell to 158 to the dollar, a level not seen in 34 years. On the this morning's news, visitors to Japan from overseas said that 40,000 yen for accommodation is not much! while Japanese domestic travellers were left with the comment that 20,000 to 30,000 is their limit....
 
When I was still young, the cost of living in Japan was one of the highest in the world. I remember international comparisons being made based on the price of a McDonald's Big Mac, and people talking about how expensive it was in Japan. However, nowadays the index is almost equal to that of Vietnam. Until about 10 years ago, the term "offshoring" was used to refer to Vietnam, where excellent IT engineers could be commissioned to develop software at a relatively low cost. But it may no longer be a dead word. You can almost hear them saying, "For that little fee...". It would be more cost-effective to develop software by Japanese engineers, and such an unfortunate situation is now approaching by the minute.
 
With such a decline in the power of the Japanese currency, the yen, it is said that more and more Japanese are going to the US, Australia and other countries to work. They are not the elite who speak fluent English and hold MBAs. They are common occupations such as cooks, waiters and craftsmen. Like construction workers who come to Tokyo from the snow country during the harsh winter months when agriculture is off-season. Over the past few years, I have really wanted to be able to receive dollars as remuneration. Because when I think about efficiency, I have to think that way. Like the time machine management of the past that brought advanced Western business models to Japan and spiced them up with a dash of localisation.
 
Despite ( because of? ) such cheapening in Japan, the stock market has been strong recently (although it has taken a break in recent weeks), and wage increases have been gaining momentum. However, prices are soaring, probably due to the weak yen. Politicians and economists are happy that deflation is over! I can't be honestly happy about it, though. because my income hasn't increased by the same amount as the rise in prices. Purchasing power has declined. I rather remember with nostalgia the days of 290 yen beef bowls during the deflationary period. Like the best meal you ever had with a woman you had romantic feelings for in a seedy restaurant when you were a student with a meagre income. If you are a salaried employee in a large company, there is no need to negotiate for higher wages. If wages are low, they are shunned by talented people. On the other hand, if you are not part of a large company like me, you have to demand higher remuneration from your clients yourself. It is very tiresome. I am too afraid of "I'm sorry, but I don't feel that you are worth it" in response to "please give me a 5% increase in remuneration".

Monetary values are often less substantial and more nominal.
 
The other day, the business practice of beating down suppliers affiliated to car manufacturers was reported in the media. It was thought to be really disgusting. On the other hand, I felt, looking back on my past, that it may be unavoidable in negotiations to be forced to deal with bad conditions because they are seen as having no differentiated strengths against the competition. In a TV programme about the secret story of a company's growth, the founding president of Chateraise, which manufactures and sells western confectionery, was forced to grab a gold watch from a shop at a ridiculous price in order to get his products placed in the storefront. He was so frustrated by this that he set up his own sales outlet. I felt a strong sense of exhilaration when he proudly told such a story while shining his gold wristwatch, whose story is so well known.
 
When you fall into a state of " self-cheapness", you have to compete on the basis of being able to force yourself, endure long periods of time, react quickly and so on. It's really hard on the body and spirit. So how do you avoid looking cheap? I think it's just right to show a little bit of a taller version of yourself. In order not to betray the debt you owe to the client who has accepted your taller self, you should try your hardest to make your taller self life-size. I hope to differentiate myself from my rivals to the point where I can't lose so much by honing my strengths with a certain degree of speed, so that I can be recognised as irreplaceable, and that only you can do it. Modesty is beautiful, and such pastoralism will keep you out of opportunities.

The goddess of fortune only has fringes (if you don't grab them quickly, they will run away from you).
Ancient Greek proverb