Bracing for the next tsunami

Bracing for the next tsunami

Posted on May 24, 2011
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As if things were not bad enough in Japan after suffering a staggering blow from the great earthquake and tsunami in northeastern Japan on March 11th, there may be even worse news coming.

Here are a few interesting statistics. 

For a typical family making 300000~340000 yen a year living in Miyagi prefecture where the center of damage was with grade school and junior high school age children.
Average savings per family:     1439857 yen
Average cost of living:                174000 yen
Average cost with 2 kids:           224000 yen

What does this mean in the grand scope of things?First, we have to remember that nearly 30% of families have no savings at all. 

And in that,  we can see that the average family in the disaster area will be able to survive on their savings for from between 1 to 8 months without having income depending on savings and number of childred. 

That means that since thousands and thousands have been left with no income, and many of those have no savings at all, we are looking at many thousands of people that have already hit a brick wall and will run out of money with many more reaching the end of their ropes over the coming months. 

Of course there is unemployment insurance, but many of these people are contract workers who will receive no unemployment. Insurance payments are slow, many do not have insurance that covers such damage and a great number are renters that will receive no insurance payments at all. 

The government is so stretched that victims in the shelters are only receiving one or two meals with a snack, most of the schools are serving only bread and milk for lunch, and with summer coming on budgets and the remaining infrastructure will be taxed to the breaking point.

This is an untenable situation and will not be over for a long time to come. We are all going to have tol dig deep and do what we can to help. Not only could it have just as easily been us in this situation, the economic shock waves are all ready being felt in many countries that have deep business ties with Japan and it only looks to get much, much worse before it gets better.

For in the end, is it any more devastating to loose your house to a natural disaster as opposed to the bank?


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