Business
Can Shrinking Be Good for Japan? A Marxist Best Seller Makes the Case.
When Kohei Saito decided to write about “degrowth communism,” his editor was understandably skeptical. Communism is unpopular in Japan. Economic growth is gospel.
So a book arguing that Japan should view its current condition of population decline and economic stagnation not as a crisis, but as an opportunity for Marxist reinvention, sounded like a tough sell.
But sell it has. Since its release in 2020, Mr. Saito’s book “Capital in the Anthropocene” has sold more than 500,000 copies, exceeding his wildest imaginings. Mr. Saito, a philosophy professor at the University of Tokyo, appears regularly in Japanese media to discuss his ideas. His book has been translated into several languages, with an English edition to be issued early next year.
Mr. Saito has tapped into what he describes as a growing disillusionment in Japan with capitalism’s ability to solve the problems people see around them, whether caring for the country’s growing older population, stemming rising inequality or mitigating climate change.
Japan, the world’s third-largest economy, has worked for years to promote economic growth in the shadow of an aging, shrinking population, with a monetary and fiscal policy that is among the most aggressive of any nation.
But there are strong indications that the country’s growth-oriented policies of ultracheap money and big government spending are reaching their limits. The interventions have done little to stimulate growth in Japan’s economy. And as government efforts to lift the birthrate also falter, with fewer people doing less work, “the room for growth is running out,” Mr. Saito, 36, said during a recent interview at his Tokyo home.
That’s seemingly true even when Japan’s economy expands. When the country reported growth of 6 percent in the second quarter of this year, it was driven almost entirely by external factors: exports and inbound tourism. Domestic consumption, on the other hand, shrank.
The focus on growth was important when Japan was developing. But now that the country is wealthy, Mr. Saito said, the insistence on an endlessly expanding economy, described in terms of gross domestic product, or G.D.P., has produced obviously wasteful spending as the government has urged people to consume more.
Some areas of the economy, such as health care, will need to continue growing, but “there are too many cars, too many skyscrapers, too many convenience stores, too much fast fashion,” he said. The focus on consumption, he argues, has had devastating consequences for the environment, driven widening inequality and wasted limited resources that could be put to better use.
Reorienting Japan toward goals that more effectively reflect the country’s current needs, he says, would mean using metrics other than G.D.P. to gauge the country’s economic well-being. The focus would shift from quantity to quality, on measures like health, education and standard of living.
Mr. Saito first encountered Marx in 2005, when he was an undergraduate at the University of Tokyo. In high school, Mr. Saito was “more right wing,” he said, convinced that individual failings were the root cause of Japan’s problems. When he encountered the German philosopher’s arguments that structural causes led to inequality and war, it was “shocking,” he said.
“After the economic crisis of 2008, there was a Marx renaissance in Japan, and I was convinced of the importance of his theory,” Mr. Saito said.
He has spent the years since studying Marx’s twilight years, when, Mr. Saito argues, the philosopher realized that capitalism, with its insatiable demand for growth, would inevitably lead to environmental disaster.
Mr. Saito conceived “Capital in the Anthropocene” — a reference to an era in which human activity has a profound impact on the Earth’s environment — early in the Covid pandemic. Socialism was a hot topic in Europe and the United States, where politicians like Bernie Sanders urged Americans to grapple with the drawbacks of U.S.-style capitalism. The aftermath of the 2008 financial crisis, rising inequality and the unavoidable realities of climate change were driving many young people to question the sustainability and fairness of existing economic systems.
People in Japan, too, felt dissatisfied with the status quo, Mr. Saito said. But unlike people in other parts of the world, “they aren’t thinking, ‘Capitalism is bad,’ they’re thinking, ‘I’m bad.’ They aren’t thinking that capitalism needs to change, they’re thinking, ‘I need to change.’”
He recognized the thinking as similar to his own in high school, when he believed that people merely needed to work harder or be more productive.
Mr. Saito’s critics have called him out for castigating the capitalist system he himself has benefited from while providing little more than unworkable idealism and failed ideology as an alternative. His book has ignited a publishing boomlet on Marxism in Japan, with some works attacking his ideas and others supporting them.
The renewed discussion hasn’t done much to revive the prospects of Japan’s own Communist Party, however. Mr. Saito is not a fan of the group, which he sees as well-meaning but stale. He also does not have much patience for other more familiar strains of communism, such as that practiced by the Soviet Union and the Chinese Communist Party, with their emphasis on state power over industry and centralized planning.
He recognizes that growth remains crucial for improving quality of life in less developed countries. And even in rich nations, he does not call for people to give up their creature comforts. He recently moved into a three-story home in an upscale neighborhood on the outskirts of Tokyo and drives a compact Toyota. One of the few things he has given up, he said, is fast food.
Achieving degrowth communism, he believes, is less about personal choices and more about changing overarching political and economic structures. Marxism, he argues, offers a viable model for reorienting society around the maximization of public goods as opposed to the endless pursuit and concentration of wealth.
That would require, among other things, moving away from G.D.P. as the key measure of a country’s health. As an alternative, he suggests the “human development index,” an idea proposed by the Pakistani economist Mahbub ul Haq, which the United Nations has used as an alternative indicator of a country’s progress.
The index — which measures life expectancy, education and quality of life — gives a more comprehensive view of how the economy affects people’s lives than G.D.P.
Mr. Saito is not clear exactly what shape a world under degrowth communism would take, but he insists that it would be democratic and focused on expanding communal resources, reducing the wealth gap and removing incentives for excess consumption.
For his own part, he is participating in a handful of projects aimed at promoting those ideas. He and a group of supporters are purchasing land in the mountains west of Tokyo, which they plan to run as a collective to benefit the local community.
And for the last year, he has spent time on an organic farm outside Tokyo that has positioned itself less as a business and more as a community resource for urbanites to get healthy food and learn about agriculture.
The farm itself is, in one sense, a glimpse of a post-growth Japan where a shrinking population finds itself left with an abundance of resources. The fields are pieced together from properties that went fallow after their owners died or got too old to manage them.
It’s the kind of scene that, Mr. Saito’s critics argue, could be common across a Japan under degrowth policies.
But he has never really believed that society needs to return to some idyllic, agrarian lifestyle.
“I’m not saying let’s go back to the Edo period,” he said, referring to the feudal era when the country was largely closed to the rest of the world.
His vision for the future is one in which people — less consumed by their endless pursuit of growth for growth’s sake — have the leisure time to spend a workday pursuing new interests, as he does with farming.
On a recent day, Mr. Saito spent several hours working alongside the organic farm’s owners, Shoko Nakano and her husband, Sho Nakano. Local residents popped in to buy vegetables from a shack built out of recycled materials, while an enormous sow snuffled in the heather beside a vegetable garden.
After Mr. Saito spent a few hours driving bamboo stakes into a field with a heavy wooden mallet, Ms. Nakano asked him if he felt energized by his experience wielding a symbol of the proletariat.
Mr. Saito laughed. “I’m definitely bourgeois,” he said.
Business
Starbucks Reverses Its Open-Door Policy for Bathroom Use and Lounging
Starbucks will require people visiting its coffee shops to buy something in order to stay or to use its bathrooms, the company announced in a letter sent to store managers on Monday.
The new policy, outlined in a Code of Conduct, will be enacted later this month and applies to the company’s cafes, patios and bathrooms.
“Implementing a Coffeehouse Code of Conduct is something most retailers already have and is a practical step that helps us prioritize our paying customers who want to sit and enjoy our cafes or need to use the restroom during their visit,” Jaci Anderson, a Starbucks spokeswoman, said in an emailed statement.
Ms. Anderson said that by outlining expectations for customers the company “can create a better environment for everyone.”
The Code of Conduct will be displayed in every store and prohibit behaviors including discrimination, harassment, smoking and panhandling.
People who violate the rules will be asked to leave the store, and employees may call law enforcement, the policy says.
Before implementation of the new policy begins on Jan. 27, store managers will be given 40 hours to prepare stores and workers, according to the company. There will also be training sessions for staff.
This training time will be used to prepare for other new practices, too, including asking customers if they want their drink to stay or to go and offering unlimited free refills of hot or iced coffee to customers who order a drink to stay.
The changes are part of an attempt by the company to prioritize customers and make the stores more inviting, Sara Trilling, the president of Starbucks North America, said in a letter to store managers.
“We know from customers that access to comfortable seating and a clean, safe environment is critical to the Starbucks experience they love,” she wrote. “We’ve also heard from you, our partners, that there is a need to reset expectations for how our spaces should be used, and who uses them.”
The changes come as the company responds to declining sales, falling stock prices and grumbling from activist investors. In August, the company appointed a new chief executive, Brian Niccol.
Mr. Niccol outlined changes the company needed to make in a video in October. “We will simplify our overly complex menu, fix our pricing architecture and ensure that every customer feels Starbucks is worth it every single time they visit,” he said.
The new purchase requirement reverses a policy Starbucks instituted in 2018 that said people could use its cafes and bathrooms even if they had not bought something.
The earlier policy was introduced a month after two Black men were arrested in a Philadelphia Starbucks while waiting to meet another man for a business meeting.
Officials said that the men had asked to use the bathroom, but that an employee had refused the request because they had not purchased anything. An employee then called the police, and part of the ensuing encounter was recorded on video and viewed by millions of people online, prompting boycotts and protests.
In 2022, Howard Schultz, the Starbucks chief executive at the time, said that the company was reconsidering the open-bathroom policy.
Business
'TikTok refugees' unexpectedly turn to Chinese alternative as ban looms
TAIPEI, Taiwan — TikTok users concerned about a looming ban are finding solace in a strange place.
Days ahead of a Supreme Court decision that could determine whether the popular short-video app shuts down starting Sunday, a number of users appear to be turning to an app called RedNote — more commonly known to its majority-Chinese audience by its Chinese name, Xiaohongshu.
It’s a surprising choice since Xiaohongshu is Chinese-owned, and such ties are the reason U.S. lawmakers moved to ban TikTok in the U.S., citing privacy and national security concerns.
Also Xiaohongshu is dominated by Chinese language, and its content is subject to censorship by Chinese government officials, something alien to most U.S. users.
But by embracing a Chinese social media and lifestyle app similar to Instagram, some U.S. TikTok users say they are protesting what they believe is the unfair ban of the ubiquitous app.
“I think America is trying to bully China into selling to an American owner. A lot of us just don’t want to give in to them,” said Samantha Manassero, a 39-year-old nurse in L.A. who downloaded Xiaohongshu on Sunday night after watching content creators on TikTok pitch it as a comparable app. “I think some of it is literally just pettiness.”
Last year, Congress passed a bill that requires TikTok’s owner, Bytedance, to sell the app to a U.S.-approved owner or face a nationwide ban. As soon as Wednesday, the Supreme Court is expected to uphold the legality of the ban.
It was unclear whether Xiaohongshu, which was started in 2013, would become a viable alternative to TikTok or if the recent migration to the Chinese platform accounts for a significant share of TikTok’s 170 million U.S. users.
But a surge in new users made Xiaohongshu the top free download on Apple’s App Store this week. No. 2 on the charts was another social media app developed by Bytedance, Lemon8. It’s unclear whether either app will be subjected to the same U.S. government scrutiny as TikTok.
It is also difficult to determine exactly how many U.S. TikTok users have created accounts on Xiaohongshu or how many will stay on it. While many Xiaohongshu regulars have welcomed the influx of Americans identifying themselves as “TikTok refugees,” the app’s interface is largely in Chinese, making it difficult to navigate for non-native speakers.
Chinese apps are subject to stringent censorship on discussions that the Chinese government deems politically sensitive. These topics can range from illegal activities to LGBTQ+ rights to Winnie the Pooh, images of which have been used to mock Chinese President Xi Jinping.
The Chinese version of TikTok, called Douyin, has different content restrictions and is only available for mobile download in China. Bytedance has argued that TikTok, which is used by the rest of the world, is a separate entity from Douyin and not beholden to the Chinese Communist Party.
That did not stop President-elect Donald Trump from proposing a ban of TikTok in 2020, or President Biden from signing it into law in 2024.
The legality of such a ban has been questioned several times. Last month, in an about-face, Trump, who has 14.8 million followers on TikTok, filed a legal brief requesting to stay the ban so he can negotiate a deal once he takes office.
As TikTok faces an uncertain future, Xiaohongshu’s latest arrivals were eager to try out the new app despite its foreign nature.
Manassero, who posts videos about healthcare and power lifting to about 7,000 followers on TikTok, said she already has a much larger audience of 26,000 on Instagram. However, she was motivated to create an account on Xiaohongshu partly out of frustration at the U.S. government’s determination to outlaw TikTok.
“I don’t know what I’m doing, I don’t know what I’m reading, I’m just pressing buttons,” Manassero said in her first video post. The next morning, her account had received 5,000 views and 3,500 new followers. By Tuesday, the hashtag “Tiktok refugee” had received more than 90 million views and 2 million comments.
TikTokers sought each other out with introductions, follow requests and shared tips on how to navigate the app’s Chinese functions. On Monday, more than 190,000 viewers joined a live chat named “TikTok Refugees Club,” and held discussions in English about what a TikTok ban would mean and future plans for social media content. In the comments, users greeted new arrivals and lamented they could not understand each other.
“Maybe you can learn how to speak Chinese,” one user wrote in English.
“Where’s the translator?” another viewer asked in Chinese.
On Tuesday, the Wall Street Journal reported that Chinese officials had discussed the possibility of selling TikTok to a trusted non-Chinese party such as Elon Musk, who already owns social media platform X. However, analysts said that Bytedance is unlikely to agree to a sale of the underlying algorithm that powers the app, meaning the platform under a new owner could still look drastically different.
Manassero and other TikTokers expressed distaste at the prospect of migrating to U.S. tech platforms such as Instagram or X that could benefit from an influx of users if TikTok shuts down.
“We don’t want to turn around and make a bunch of billionaires even more rich,” she said. “I would honestly rather the app get shut down than be owned by Elon Musk.”
Though she is still trying to figure out how to use Xiaohongshu and message people back, Manassero said she would likely stay on the Chinese lifestyle app regardless of whether the TikTok ban goes through.
“The response has been so friendly and nice. It’s good energy,” she said. “This feels like the early TikTok days: a little more organic, so it’s fun.”
Business
Why TikTok Users Are Downloading ‘Red Note,’ the Chinese App
Manimatana Lee spent the past five years building one of the hottest commodities on the internet: a group of people who reliably watch her videos on TikTok.
She built an audience of nearly 10,000 followers with videos of herself vacuuming her house in Wisconsin while her youngest daughter napped in a carrier on her back. A video of Ms. Lee dancing and doing the dishes — while wearing her sleeping baby — has been watched more than one million times since November.
Now, with the Supreme Court soon to rule in a case that could determine whether TikTok could be banned in the United States over national security concerns, Ms. Lee and other Americans looking for alternatives are downloading Xiaohongshu, a social media app that is popular in China and little known outside the country.
“How funny would it be if they ban TikTok and we all just move over to this Chinese app,” Ms. Lee wrote on Monday on TikTok encouraging her followers to join her.
Xiaohongshu was the most downloaded free app in the U.S. Apple store on Tuesday. Over 300 million people, mostly in China, use the app, where they share short videos as well as still, text-based posts. People flocking to it said, in interviews and on the app, that they wanted to show they do not share Washington’s concerns about TikTok’s ties to China.
TikTok, which is available in more than 150 countries but not China, is owned by the Chinese internet company ByteDance. American creators who post videos on TikTok say the app has been a source of connection, entertainment and information since it became a sensation during the Covid-19 pandemic. Its secret sauce is its proprietary algorithm, technology that recommends a constant stream of short videos targeted to keep people scrolling.
But lawmakers in the United States and other countries have warned that the Chinese government could use TikTok to access data about its users such as location and browsing histories. Officials in Washington say they are also concerned that China could use TikTok to spread false information among the 170 million people who use it in the United States.
Xiaohongshu means “little red book” in Mandarin. Americans new to the app said they were not put off by the reference to a book of Mao Zedong’s sayings. Many call the app “Red Note.”
“I don’t really care if I’m using a Chinese app at all,” said Ms. Lee. “It’s like a place for me to escape reality. And if it’s making me feel good, I’m here for it.”
A group of American creators have sued the government over the law that could see the TikTok app forcibly sold or banned in the United States, and TikTok is paying their legal fees. Ms. Lee and another creator said in interviews that their interest in Xiaohongshu had not been incentivized by either company. TikTok did not respond to a request for comment.
The Americans on Xiaohongshu have rallied under the hashtag “TikTokrefugee,” which had been viewed 100 million times and sparked around 2.5 million discussion threads on the app by Tuesday.
Joining the app has put American users in closer contact with people online in China than they have ever been on TikTok. In China, people use Douyin, a very similar app that ByteDance used to develop the technology that made TikTok a worldwide hit. Douyin is difficult to access outside China.
Many shared tips on how to navigate the app, which is mainly made for and used by people who read and speak Mandarin. Some took screenshots and asked ChatGPT to translate posts, they said.
Xiaohongshu displays the city or province of Chinese users who post and comment, and the country for users outside China. “We are coming to the Chinese spies and begging them to let us stay here,” said one American user. “Approved, welcome to Red Note,” someone in Shanghai replied.
Until late December, 85 percent of Xiaohongshu traffic was from China, according to Similarweb, a data provider and website traffic tracker. The app is especially popular among women in their 20s and 30s, and its long comment threads have become a popular source of information for people to swap questions about everyday concerns, similar to Reddit.
Xiaohongshu did not respond to requests for comment.
On Tuesday, more than 100,000 people had joined a live group chat hosted by a user named “TikTok Refugee Club,” where people from around the world chatted with Chinese users about urban safety. In another group chat, which had been viewed more than 30,000 times, participants discussed censorship and shared tips in the comments on how to avoid being banned from the platform for bringing up politically sensitive topics.
Under another video posted by someone who said they were usually on TikTok, a user in China responded with a meme of a cat with paws outstretched. “I’m your Chinese spy,” the comment said, “give me all your data.”
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