On The Media

Tim has been on a roll recently. Not that Tim, the other Tim. Tim Pool. When YouTube and Twitter started purging ‘conservative’ Japanese content that wasn’t breaking any content rules, following what YouTube and Twitter were already doing in America, Tim Pool was the only online journalist reporting it.

I don’t always agree with Tim’s politics or watch every video post, but I always keep an eye on him. His reports on the devolution of mainstream media and how social media like YouTube and Twitter contribute to that decline, is on the nose. Another thing I like about Tim is that he believes in positive engagement and calling things as he finds it. This sets him apart from former Vice News colleagues: Tim has not lost the ability to think critically and objectively, he questions everything and tries to examine both sides of an issue. To me this is healthy.

And Tim knows when to play the YouTube de-ranking guessing game because he knows there are more important things to report on than waste time fighting YouTube. His milk toast reports are considered so dangerous by YouTube that real YouTube humans review his every video and suppress ones they don’t like:

One disturbing trend that social media drives is what I call cut and paste narrative journalism. Part of it is driven by the need for clicks and what big media thinks will sell. I see this frequently in mainstream western reporting on Japan that likes to portray Japan in a negative light. Here’s a recent piece written by Ian Bremmer for Time titled, Why the Japan-South Korea Trade War Is Worrying for the World, where you can see cut and paste narrative journalism in action.

Why the Japan-South Korea Trade War Is Worrying for the World

The opening sentence is a setup: “but it’s the trade spat between Japan and South Korea that signals the larger troubles ahead for the world.” This is Bremmer’s opinion, nothing else, and puts him squarely in the South Korea supporters club. There are plenty of economic experts who will tell you that Japanese ~ South Korean trade volume isn’t nearly as important as the media makes it out to be.

Skipping the next few sentences of regurgitated South Korean side only history, we arrive at the crucial sentence:

“Frustrated with the proceedings and determined to put pressure on Moon’s government to intervene in some way, Japan strengthened restrictions on several high-tech exports to South Korea in July and downgraded South Korea’s status as a trusted trading partner in August.”

This is classic cut and paste narrative. It substitutes fact for opinion, while presenting it as fact. Bremmer removes all the context of Japanese claims that South Korean was violating UN sanctions on North Korean, among many other things, leading up to the sanctions. Instead of crucial context we get: Japan is frustrated. Really? Can you prove that Ian?

The rest of the piece deflates from there into a half-hearted denouncement of President Trumps foreign policy, without naming Trump, as if Bremmer can’t decide whether it’s a good or bad thing for the U.S. to play the world’s policeman.

I find it hard to stay well informed with big media these days. Big media is still important but sifting the good from the bad is a lot more work. Unfortunately I don’t think it’s going to get easier.

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The JAPAN CASHLESS Rebate Week 1: MiniStop Reports 6% Cashless Payment Use Increase in First Week

This is what we were waiting for. After all that hassle of getting ready for the CASHLESS rebate program, how many people were actually going to go cashless to get the rebates? NHK reports that the MiniStop convenience store chain saw a 6% rise in cashless payments use rates in the first week of the rebate program, rising from 24% to 30%. MiniStop president Akihiro Fujimoto said he was surprised at the quick uptake. I’m not.

30% was the informal Apple Pay Suica use rate I found in station areas in 2017. The MiniStop number is just one data point from one store chain, so it will be interesting to see how cashless use rate averages pan out over time. Convenience stores chains offer 2% rebates with cashless purchases, calculated and deducted from the customer bill at checkout. Smaller store 2%~5% rebates are post-transaction refunds. Despite the small data sample size, I think we are already seeing the beginnings of a tipping point here.

The JAPAN CASHLESS Rebate Day 1: convenience stores

It was a fun day. I tried out some local CASHLESS rebate stores and it was…boring. I paid with Apple Pay Suica like I always do. A close examination of the receipt showed that the 2% rebate was instantly deducted from the transaction amount. I didn’t have to say anything or do anything but wave iPhone to the reader.

That was not clear from the CASHLESS web site: When you make a cashless purchase with any of the certified methods (credit card, Suica, QR, etc.) at a convenience store, the consumption tax is automatically calculated at 8% or 10% depending on item (food vs. household items). The 2% rebate is instantly implemented in the transaction as a discount from the sub-total (items plus tax). For people who don’t want to bother with JRE POINT, paying with Apple Pay Suica at convenience stores is a JAPAN CASHLESS no brainer.

I am still digging but the instant 2% tax discount appears to be the case only for convenience store transactions. Other stores (without the fancy POS systems) calculate the transaction with tax but the CASHLESS rebate is refunded later as outlined.

It will be interesting to see how many stores end up being classified as ‘convenience stores’ for the CASHLESS program as supermarkets are explicitly left out of the the equation. All the major convenience store chains will be onboard, but will AEON ‘My Basket’ stores be classified as a convenience store or a supermarket? It’s a squishy line.

Some quick impressions:

  • everything happens automatically on the backend, there is nothing the customer or merchant needs to do, just follow the usual routine
  • if you pay cash at convenience stores you are throwing away money
  • I can’t wait for the CASHLESS program to expand to DOUTOR so I can kiss Starbucks goodbye for the duration of the program
  • Ditto for MiniStop, 7 Eleven ice coffee sucks and they don’t have those cheesy dog things

UPDATE: MiniStop is on the CASHLESS map now:

The Real Reason Japan is not Cashless…but eventually will be

Lots of silly western journalist reportage from the likes of the Financial Times (FT) and PYMENTS.com have attempted to explain the ‘cash addiction’ of Japanese society by spinning it as a failure of Japanese contactless payment technology: FeliCa, QR Codes, etc. They have failed miserably.

They would have done much better if they had gotten up from their desktops, loaded up Apple Pay Suica with a full charge of ¥20,000 and actually bothered to travel outside of Tokyo, with a few local train trips to the Japanese countryside to talk with Grandma Japan. Grandma Japan holds the family purse strings. Grandma Japan has credit cards and transit cards but those are just window dressing.

She is set in her ways, ways that have safely seen the family thought generations, the real household management is arranged around multiple hard cash osaifu ‘purses’. These purses are different accounts at different banks. Bank A is the medical purse, bank B is the insurance purse, bank C is the loan payback purse, and so on.

The Japanese Government knows this and is, slowly, weeding down the number of local banks, twisting arms, encouraging bank mergers while changing banking rules. X Day will finally arrive when Grandma Japan is forced to put all those purses in a single bank. The bank will kindly offer to manage all those purses for her, and oh, here’s this convenient Rakuten Super Suica + credit card that works everywhere in Japan for transit, shopping, getting cash when you need it, and getting points. You can also gift your grandkids with those cards too, and control how much they can use.

Get the picture? At that point Grandma Japan juggling too many hard cash accounts at one bank will be too much because it’s not traveling from bank A to bank B anymore. It’s all virtual in one place. She will throw up her hands and go cashless, and at that point Japan will truly become cashless in the more important way because it’s not about technology, it’s about households and family life. Unfortunately it’s a point that most western journalists in Japan don’t get, and can’t get, until they get their head out of technology and their body out of Tokyo.

Sayonara 10% Consumption Tax

There have been consistent rumors that the 10% consumption tax with cashless point rewards due to start in October was going to be spiked. Now that there are rumors of a ‘double’ election this summer, and especially after President Trump mused about scrapping the whole postwar American-Japanese defense treaty system, I think we can safely assume the 10% consumption tax is never going to happen. Prime Minister Abe can have a tax increase or he can change the constitution. He can not do both, and no politician is going to support the tax increase publicly going into the summer election, even thought the Komeito is said to want it enacted.

So who are the losers? Well, Komeito for one which the Abe government needs sidelined in order to amend the constitution, and Rakuten for another as they were hoping to ride the cashless point reward with consumption tax wave. Buckle up everybody, it’s going to be a long hot summer with lots of political debate over the constitution and Japan Self-Defense Forces.