Some comments:
- Japan, as you see it now and to a large extent as I saw it when I most recently lived there, has a lot of quality of life (QoL) benefits that are common. Things like safety, nice people, high attention to detail, relative lack of poverty, etc. are so common in Japan that it is easy to take them for granted if you've been there for a while. (snark incoming) Note that you come from NYC, so improving these types of QoL aspects are a very low bar. ;-) All joking aside, I think you could find similar qualities that you like about Japan is some second-tier-sized US metropolitan area (much like Nagoya is a second-tier-sized metropolitan area in Japan).
- As a slightly seasoned Japan hand, I can tell you that you seem to lack the perspective of relatively recent Japanese history. From the 50s until the 80s, there were constant and substantial QoL improvements across the board in Japanese lives (in aggregate) -- better housing, better transportation, better food, better economy, etc. Parents always wanted better for their kids, and society delivered in spades. These days, kids are rarely better off than their parents, and holding the line is largely considered a success. As such, those with knowledge of Japan's recent past (perhaps before you were born) don't really see things as that great in the grand scheme of things. The present may not completely suck, but the future outlook isn't particularly rosy either. (Note that a similar comment can be made about the US from the 50s to the 00s with a slightly less negative outlook for today's youth, and I would agree, but the details of the rise and fall strike me as being vastly different -- a topic for another post). I encourage you to talk to older Japanese people about the 60s to 80s and compare that to how Americans (esp. non-New Yorkers... NYC is just different) talk about the same time period.
- On a personal level, I can say that the robustness of the Japanese economy is just a shadow of it's former self. This is most easily seen in the moribund state of the drinking districts (once bustling areas now seem like ghost towns), but it can also be seen in the heavily reduced footprint of light industry and logistics if you poke around the right places. Anyone who was alive in the 80s (and even early 90s) in Japan is kind of hoping for some of that economic swagger to return.
- Japan will certainly adapt, as you say. That's not really the worry. In fact, most Japanese people don't really have a good feel for Japan's rise and (the beginning of the) fall of Japan in the world political and economic scene. That said, those that do understand have been on a wild ride the past few decades, and I think the descent will continue quite a ways. This is and will be distressing to the Japanese elite (e.g., the folks who are internationally minded in terms of business and politics). Maybe this is the facet that you see differently than the negative/doomsayer folks.
- I'm glad to hear that you are in startups. This is one of the potential outlets that Japanese youth have for their talent (since Japan Inc is largely snubbing them). That said, the lack of social status of start up jobs is a potential problem. Maybe Japanese society has moved forward in this area recently and I haven't noticed (a couple of the tell-tale signs will be the quality of marriage prospects for Japanese founders/employees and the ability of Japanese start up founders/employees to rent nice places on reasonable terms when they are making decent money).
- FWIW, I think Japan will become an even better to host a US-based tech business moving forward. I personally believe that earning dollars and spending yen is very solid right now and will be ++++++++EV in the future.
- (side note nitpick, but there's a point) Note that I didn't say that "only upper class people live well in Japan". I don't believe that one bit. I said something like the upper class people and people who work for international companies and governments (note that you are one of these) are the only folks I know who don't worry about the Japanese economy, and that is largely because their/your day-to-day livelihoods are not tightly tied to the vagaries of the Japanese economy.
- It seems like you have a lot of appreciation of some of the dentouteki values of Japan -- I do, too. Sadly, compared to even 20 years ago, the institutions that support these values have deteriorated substantially. Thankfully, there are some diehards who still hold these values dear. I hope that they are able to pass the best of these on to future generations.
So this was a reply that was part for you and part for other readers. If you would like to continue the interaction, please let me know. Throw some sort of site or e-mail in your profile and I will contact you.
Thanks again for your reply -- it has helped me look at Japan from a different perspective.