Editorial
Consumers batten down the hatches in stormy economic seas
Japan's economy has contracted significantly. The majority of goods and services are not selling well, and prices for those that are remain low. In 2009, sales of some products are expected to have plunged to the lowest levels in over 10 years, according to forecasts.
A growing number of consumers who are reducing their spending have chosen to share goods with others. Car-sharing businesses, for example, are spreading in urban areas. Unlike rent-a-car services, members of car-sharing services can use a car for a shorter period, such as half an hour or one hour. These services are based at not only parking lots but also gas stations or convenience stores. Some services even use local government cars when they are not used.
More than 30,000 members have been registered with ShareMo, a Web site on which members can lend and borrow clothes, video game software, English textbooks and baby goods among other items. Members can lend and borrow goods on the site and use the services if they pay shipping fees on delivery. The operator of ShareMo gains income mainly from advertising fees.
Brand-name bag and jewelry rental services are also growing in popularity, mainly with housewives, while room-sharing is spreading among young people.
These moves have been triggered by a decline in household income, but should also be regarded as a wise choice in a mature society.
It should be welcomed that people are less inclined to own goods and make efficient use of them in order to reduce waste. This tendency shows that Japan is becoming a recycling-based society, which will contribute to the prevention of global warming. The process of sharing something with others could also help revive close communications between people.
At the same time, however, such a wise choice could deal a serious blow to Japan's economy. If consumers do not have to buy goods, then their buying motives will further decrease, and eventually, Japan's economy will continue to shrink.
It is necessary to find a way out of the situation in which reasonable action that responds to the demands of the times causes an economic downturn. A hint about doing so can be found in regional communities' efforts to vitalize their economy.
Last summer, journalist Hiromi Kanamaru published a book, "Inaka-ryoku" ("The power of rural areas"), about various examples of efforts to revive rural areas across the country. It focused on Ojika, a town on an island in Nagasaki Prefecture visited by numerous Japanese and foreign tourists, and the Hyogo Prefecture city of Toyooka, which has established its brand image as a city of environmental protection by preserving endangered Japanese storks.
"Many of the successful regional communities took action after noticing that developing industries on their own, instead of leaving such efforts to others, will lead to sustainable vitality. If you try to fully utilize potentials of your community from a long-term perspective, then you can have clear prospects for success," says Kanamaru, who visited 800 farming, mountain and fishing villages while writing the book.
We tend to believe that companies, the government and politicians are moving the economy, but in fact citizens are playing a key role in economic activities. Therefore, what we should avoid is to pour cold water on people's enthusiasm rather than fearing that the economy will sink into a double-dip recession or that the yen's value will rise sharply. Such a "mental deflation" must be prevented by all means.
One suspects that we swing between elation and desperation at the whim of the economic indexes, and underestimate our and others' potentials.
We should remember that the accumulation of each individual's enthusiasm and activities forms large-scale economic activity and lays the foundation for people's livelihoods.
(Mainichi Japan) January 5, 2010