Japan certainly makes good use of technology, then how come its GDP per capita is less than the U.S.?

Question

Perhaps GDP is not a good way to measure wealth. Would any say that Japanese have a better quality of life than those in the United States (on average)?

Answer 1

Japan makes a good use of technology in some ways, but in other ways not. For example in the US information technology is very well integrated into the processes of enterprises, but in Japan they are still a bit behind in using IT in ways that is going to make for large gains in productivity. For example most American companies have no problem with making redundant employees who can be replaced by IT, but Japanese firms pay money for the computers but then keep the people due to the tradition of lifetime employment.

So the GDP per capita gap is best explained by all the obviously less than %100 productive people in Japanese firms. Japan is a country where they have elevator operators for automatic elevators, office ladies who basically just make tea etc., carpenters than are excellent craftsmen when proceeding at an artisan's pace, men who go to the office and read the newspapers while waiting to get their pension etc. etc.

"Quality of Life" is a very subjective thing. Obviously Japanese people feel that paying people to do relatively meaningless jobs is good for social cohesion. Americans on the other hand, don't mind a bit of social turbulence in the search for efficiency. Hence a Japanese and an US firm may both have the latest technology, but in the latter case it makes a larger bottom-line contribution to per-capita GDP.

Answer 2

I think that in America, the gap between the rich and everyone else skews the data a lot, many Americans are living at or below poverty levels due to low minimum wage, and high living expenses. For a middle class family to exist in the USA, The husband and wife must both have jobs, sometimes each having more than 1 job. In Japan, The husband works, and the wife usually has at most a part time job. Yes, home ownership is much higher in the united states, but that depends on where you live. Currently, Real estate prices are really inflated in Japan, due to high demand and low amount of space to live.

Culturally, it is expected that women in the workforce are only working part time, or just working to find a husband, so there are very few career women in Japan..

Answer 3

Let me see. GDP is a measure of economic wealth of a nation's output within its borders, if I remember my macroeconomics. Also the population of the US is twice as much as Japan's. But the US economy is more than twice as large as Japan's. (I have to lookup the latest economic statistics on that). That's why the US GDP per capita is higher. True, technology makes an economy more effecient thus productivity is more, you will be surprised how the US worker is more productive than the Japanese counterpart.

Answer 4

In My opinion is because CEO's in the USA get multi million dollar pay packages that boost Americas GDP. If it were not for the cost of property in Japan. There is not much space available for 130,000,000 people. I think that the average Japanese has more buying power than Americans. The best jobs in the USA for the average joe are Government Jobs. (A government job is the American dream)

Answer 5

One of the reason which came up in my mind immediately is that the salaries of many Japanese women paid by companies, which are located in Japan, are less than half of those of Japanese men, because many of Japanese women in Japan have been forced to work as permanent temp worker, or as a permanent lower salary receivers in permanent worker, regardless some of both permanent and temp. of them are required to work longer hours and much more harder than Japanese business men.

Answer 6

Measured as .. GNP - japan is possibly higher - (per-population).

As figures are measured in - U.S. $ so depends what day it is ..lol Yen exchange rate versus Dollar etc.

I guess some Citizens of both countries, would argue who has the best "quality of life" .

Answer 7

Yes. That's right. The average income of the president in Japan is aroud USD300,000.(by Labor research Institute). It is not that much.
There are a tendency to hold the gap between rich and poor people in Japan.
The purchasing power of Japanese women is very strong.

Answer 8

to many people not enough room