Japan faces a complex interplay of social and economic issues, most notably a declining birthrate, an aging population, and persistent deflation. These factors are interwoven with seemingly disparate areas such as the foster care system and domestic food production. The shrinking population places a strain on the foster care system. Fewer children are born, yet the need for foster care remains, often due to family breakdown or poverty. This creates a disparity between the number of children needing care and the availability of suitable foster families. Furthermore, the aging population means fewer individuals are able to take on the responsibility of fostering, as many potential foster parents are themselves elderly or nearing retirement. Simultaneously, Japan grapples with challenges in domestic food production. An aging farming population and a preference for imported, often cheaper, food products have resulted in a decline in domestically produced food. This increased reliance on imports makes the country vulnerable to global food price fluctuations and threatens food security. Moreover, supporting domestic agriculture could create employment opportunities, potentially mitigating some of the economic pressures caused by deflation and population decline. Deflation, characterized by sustained decreases in the price level, presents a significant challenge to economic growth. Consumers postpone purchases expecting further price drops, impacting business investment and leading to a vicious cycle of low demand and low prices. The interplay between deflation and food production is evident: lower food prices, while beneficial to consumers in the short-term, may not provide sufficient income for farmers, leading to further decline in domestic agriculture. The government is actively seeking solutions, considering policies to support both foster care and domestic food production. Incentives for foster families, improvements to the social safety net, and measures to bolster domestic agriculture are being explored. However, the effectiveness of these policies relies on addressing the underlying demographic trends and the pervasive influence of deflation. A holistic approach is needed to sustainably resolve these interconnected problems.
1. According to the passage, what is one major consequence of Japan's declining birthrate?
2. What factor contributes to the decline in domestic food production in Japan?
3. How does deflation negatively impact Japan's economy, according to the passage?
4. What kind of approach is suggested to address Japan's interconnected problems mentioned in the passage?