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Japanese household assets stand at ¥2,007 tril as of June

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People can't go anywhere and spend all that cash, if and when borders are 100% opened with no restrictions watch that cash fly out the doors.

4 ( +4 / -0 )

Would be nice if the govt used this data to calculate median household net worth. An aggregate figure isn't much help.  

Cash and deposits, which accounted for more than half of the total...

That's insane. Stacks and stacks of of brown bills moldering away in people's homes.

5 ( +7 / -2 )

I would like a breakdown of these numbers. Who all is holding this cash?

It certainly doesn’t include a majority of people 45 and younger.

I suspect this is also why certain generations (older ones) are opposed to the MyNumber system. It might reveal that they hold a lot of wealth and do not need to stick it younger people with cheaper visits to the hospital or higher pension payouts funded on the backs of workers.

3 ( +5 / -2 )

No one is willing to spend because of Covid and no one wants to invest because of Covid. Only when the mindset is changed to pre-Covid state is when we see a dynamic turn of economic activities here in Japan. In the meantime, let's see how other countries will start bridging the gap and will overtake Japan in terms of economic progress earlier than expected. Japan is SINKING!

0 ( +1 / -1 )

More than the national debt @ 1,255.19 trillion yen ($9.43 trillion).

In a table of medians, Japan is 13th @$122,980 per person. UK 11th @$131,522 per person. The U.S. 26th @ $79,274 per person.

https://en.wikipedia.org/wiki/List_of_countries_by_wealth_per_adult#By_country

0 ( +2 / -2 )

Who all is holding this cash? 

It certainly doesn’t include a majority of people 45 and younger. 

You are right, the elderly have the savings. To an extent this makes some sense because without decent incomes, they need to have savings to live off.

It might reveal that they hold a lot of wealth

As a cohort this is true, but while many elderly have saved a reasonable amount, others haven’t or couldn’t.

and do not need to stick it younger people with cheaper visits to the hospital or higher pension payouts funded on the backs of workers.

I personally believe that these systems should be fundamentally reformed so that we don’t waste money on people who don’t need it. Alas though this would be seen as an evil neoliberal idea…

As for those wealthy people though, they don’t have that much wealth. And they won’t be able to keep it. Japan has the highest effective inheritance tax rates in the developed world, given that the standard exemption is for a mere 30,000,000 yen, plus 6 million for heirs. Wealth above that gets confiscated by the government at progressively higher rates.

(Personally, I see this as a massive disincentive for saving, and with the unproductive tax avoidance advice industry and misallocation of resources it creates, on the whole is bad for Japan.)

4 ( +4 / -0 )

Would love to hear the figures for U40s

2 ( +2 / -0 )

How they know all this information?

1 ( +2 / -1 )

Total household assets, including cash and deposits as well as securities, were close to the record level of 2,014 trillion yen at the end of last year. Cash and deposits, which accounted for more than half of the total, increased 2.8 percent to a record 1,102 trillion yen.

Cash and deposit counts half of it, and probably mostly owned by over 60yrs old people. 50% taxable for inheritance which would fill the government debt straight. That is the point.

2 ( +2 / -0 )

No one is willing to spend... 

That isn't true. Japan retail sales were up in July, while automakers have been canceling customer orders and delaying dealer shipments due to supply chain problems.

-1 ( +0 / -1 )

Inheritance tax begins at 10%, not 50% for the first ¥10 million. 50% is only paid when ¥300 million to ¥600 million is reached. 55% after that.

You would know that if you were Japanese.

2 ( +4 / -2 )

50% taxable for inheritance which would fill the government debt straight.

Yeah, if everyone just gave half of their wealth to the government the debt could be wiped out. (Shhh, but this is why they are so keen on having inflation.)

Another problem is though, the government is still creating more additional debt.

It makes one think we might be better off with much less government interference in everything.

2 ( +3 / -1 )

Fx is entirely right.

Less government and less borrowing would be a boon for this economy.

1 ( +3 / -2 )

https://www.theguardian.com/news/2022/sep/20/number-global-ultra-high-net-worth-individuals-record-high

The Bank of Japan channeling the Ministry of Plenty’s Newspeak pronouncements.

-1 ( +0 / -1 )

How they know all this information?

More than easy and without any data leaks . They just count their own money and assets. Or do you think there is anything to count from your or mine? lol

0 ( +1 / -1 )

How they know all this information?

Um, the people declare it every year to the government. Have you never heard of taxes?

0 ( +4 / -4 )

I personally believe that these systems should be fundamentally reformed so that we don’t waste money on people who don’t need it. Alas though this would be seen as an evil neoliberal idea…

It's a tough situation for sure. Whilst many elderly probably struggled to save despite working hard throughout their lives, many others will have "squandered" their money on pachinko, designer handbags and hostess bars. The only way to monitor this kind of thing would be implementing some sort of CBDC (central bank digital currency), which could keep a record of all the money you earn (already pretty standard), but also keep track of exactly where you spend it (kind of scary). Then we start getting into the realm of punishing/defunding people who just wanted to enjoy their lives.

-1 ( +0 / -1 )

As for those wealthy people though, they don’t have that much wealth. And they won’t be able to keep it.

Some may laugh at the idea of stashing huge amounts of cash under the mattress, but when it comes to avoiding Japans ridiculous inheritance tax...

3 ( +3 / -0 )

An inheritance tax (sōzokuzei) in Japan is a tax paid by someone who inherits money or property from someone who has died. In Japan, it is paid as a national tax (between 10 and 55% after an exemption of ¥30 million + ¥6 million per heir is deducted from the estate).

0 ( +1 / -1 )

That's quite a household.

0 ( +0 / -0 )

Mmm… sounds like a large number but accounts for about 25,000 usd per house hold , of which there are 53.3 house holds in Japan. And of course the wealthiest 5 % would hold the bulk of that.

The average Japanese person is falling way behind what the rest of the 1st world is doing & holding.

0 ( +1 / -1 )

others will have "squandered" their money on pachinko, designer handbags and hostess bars

People should of course be free to spend their money how they please.

Another approach here rather than tracking all spending, is to do something like compulsory individual savings accounts. Then, have the government top up the accounts of those who are unable to fill up their accounts. This is what we fail to do with the current systems that prevail in many basically bankrupt countries.

These compulsory accounts would only be able to be spent on health services, or in times of unemployment, and similar types of situation.

If the saver hits retirement or death then any remaining savings could be inherited (tax free) by the heirs.

Ideally we wouldn’t need compulsory accounts at all, but given that we have mandatory tax and spend as it is, at least compulsory accounts would be a step in the right direction, of not having government spend money on those who are not in need.

-1 ( +0 / -1 )

The only way to monitor this kind of thing would be implementing some sort of CBDC (central bank digital currency), which could keep a record of all the money you earn (already pretty standard), but also keep track of exactly where you spend it (kind of scary). Then we start getting into the realm of punishing/defunding people who just 

With the drive towards a cashless economy for “convenience” this is already happening. If the government controls your money, they control you. End of any hope of individual freedom.

0 ( +0 / -0 )

@wallace, that’s right.

At 36 million yen, it means that people with only a quarter of a million dollars will see the Japanese tax agency expecting their cut.

This level is ridiculously low, yet Japan’s last move was to lower it, not hike it higher. Japan is out of step with the developed world which has been moving away from these wealth taxes, which are a double tax and disincentive to saving and investing and looking after oneself and family.

-1 ( +0 / -1 )

Chabbawanga.......

Some may laugh at the idea of stashing huge amounts of cash under the mattress, but when it comes to avoiding Japans ridiculous inheritance tax...

There are much better ways of avoiding inheritance tax than cash under the bed. Only the under prepared need pay any at all.

-2 ( +0 / -2 )

 2,007 trillion yen

My calculations may be wrong, but is that not about 15,000 yen per person? Is that a lot or a little? (Brain hurting.)

0 ( +0 / -0 )

2,000 trillion (2,000 + 12 0s) divided by 125 million is 16 million.

1 ( +2 / -1 )

Thanks, Wallace. Maybe I should go back to school.

0 ( +0 / -0 )

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