Japan's social disparity accelerates "yen deprecia

#Acceleration#gap#depreciationFor some 40 years after the Nixon shock of 1973 in the second half of the 20th century, the world's currency was changed to a floating exchange rate system, the Japanese economy was overwhelmed by the depreciation of the yen and the appreciation of the yen. Afraid of the appreciation of the yen, and relieved by the depreciation of the yen, this habit has been deeply rooted in Japan since this time. This is because the Japanese economy at that time was driven by manufacturing for exports.It's natural to think about it. At that time, the number one manufacturing industry in Japan was the automobile industry, and its largest market was the United States. Suppose you have a car that sells for $20,000 in the US. Assuming that one dollar is 100 yen, the cost of exporting a complete vehicle from Japan is 1.2 million yen. The cost in dollars is $12,000 and the gross profit is $8,000. (Actually, a portion of the profit goes to wholesalers and dealers.) When this price rises to 80 yen per dollar, the cost in dollars rises to $15,000, or 1.2 million yen divided by 80 yen. Gross profit decreased to $5,000. If it's in Japanese yen, it's actually the same, but this time the $20,000 price tag will be 1.6 million yen instead of 1 million yen. Therefore, in Japan at that time, the formulas of "a strong yen is recession" and "a weak yen is prosperity" were established.After that, in the "Abenomics" conducted by the Abe administration at the time in the 2010s, the yen exchange rate must have been successful in inducing cheapness. But it's not as effective as it was at the end of the 20th century. <Deindustrialization of major industries> This is because the Japanese economy is being hollowed out. Most cars in North America are produced locally. Although it has fluctuated in recent years, the Japanese auto industry as a whole is about 20% domestic production and 80% overseas production. Since domestic production includes minicars, the foreign share in currency terms is higher. Although the parts and material industry is still in Japan, the composition is that large components such as engines are assembled in China, and the complete vehicle is in North America. In this case, the contribution of a car's sales to Japan's economy, or GDP, is extremely limited. Still, the business community wanted the yen to depreciate, and the Abe government responded with another purpose. As a result, multinational companies from Japan, such as the auto industry, appear to expand when converted into yen due to the depreciation of the yen.In addition, shares in many companies are held by overseas shareholders and traded in overseas markets such as New York. Therefore, stock prices are formed by the dollar, but if the yen depreciates, the stock prices in yen will expand. Therefore, if viewed purely in Japanese yen, it means "unprecedented profits in the market" or "unprecedented share prices" of multinational companies.