Untitled Essay Research Paper The Economy of — страница 3

encourage a bonding relationship between father and son. On one side this program may allow a regular income worker to be a home owner but on the other side this person will bare a debt for the entire life and passes on to the next generation. Moreover it may limit on the consumption of the borrower on other composite good. The booms in land prices also discourage people’s incentive to work. (2) “Because if any lucky individuals inherited or own a piece of land in metro Tokyo, they will suddenly gain a net worth of 250 to 300 million yen.” This amount of money is equivalent to honest man*s life time income plus retire pension. Since may people get rich during this period, the number of middle class income in Japan had tremendously increase. Under these circumstances, many

believe they have already achieved the good life therefore people lose the incentive to work hard and get ahead. Therefore it will distort the social structure in Japan and create many problems to the government (taxations). Since the sacrifice and cost of home ownership is so high therefore many Japanese had prefer to rent. Since the demand of rental market increase, it also attracted many investor and speculator. Therefore tenants also suffer from the incremental raise of land price. In Japan, young couples, low income group and the elderly participated as the major group of tenant in Japan. During this period, owners were looking to sell their property for high return and in order to force the tenant to move (after tenant moves landlord can chose higher quality tenant or

resale the property for a larger profit) rent rises extremely high. Many elderly were unable to afford such high rent so (2) – Wood, “The Bubble Economy”, Sidgwick & Jackson, London 1992 pg. 61many were force to move. As a result many had become homeless. In some cases tenant refuses to move so some owner will hire organize gang group to force them out. Some of these unfortunate tenants will give up the hope in home ownership in the core and move further and further away from the center. Therefore many of them will spend over 2 to 3 hours to commute from their place to work. So either way, home owner ship and tenants suffer from the raise of housing price. The natural populations are not the only civilian of this incident. Many foreign students also suffer from the

housing problem. (3) “In 1986, there was a statistic taken over a total number of 8116 foreign students. Apparently only 17% lives in an adequate resident facility.” The primary reason was due to the cost of rent, high exchange rate and lastly it was because the local people do not wish to rent their property to foreign student. Student associate had propose to built new resident housing but due to the heat of land speculation (create an increase in the demand of land) and high construction cost, the new residential housing will be very costly. Therefore this new construction will probably raise the rent 2 to 3 times. While the housing problem continues for foreign students from 80 onward the Japanese government had still declare that they (4) “expect a total of 100,000 new

foreign student will be coming in during the 21st century.” This reflects that the government has pay very little awareness not only on the natural population but also foreign student. Beside foreign students and the natural population, another group that affects by the high land prices was foreign ambassador. As the price continued to rise (specially in Tokyo), the ambassadors of the lower wealth countries (such as Africa or Uganda ) were force to move their location away from Tokyo due to high rent. Although this problem was reflect to the Japanese government but it was remain un solve. Other side effects of the land speculation was the new residential construction during that era. In (thousand leaf city) many of the new construction area no longer have a large plain or play

ground that similar to a traditional residential area.(3) – Cao Man Kit, “The Life of Foreign Student in Japan”, Ming Chang, H.K. 1991, pg.160 (4) – Cao Man Kit, “The Life of Foreign Student in Japan”, Ming Chang, H.K. 1991, pg. 167In one of the Japanese newspaper there is an advertise article that describes their forecast on the living condition of the Japanese in the 21st century. (5) “The husband should not return home until weekend, during weekdays just live in worker*s resident near their workplace. This resident housing should be similar to hotel where it has an into desk that can wash your cloths, postal service and take your message. Their home should be in some rural or less urban area that 100 km away from work.” This reflected that the rise of land