Japan is making up for its Lost Decades

A record 3.1 million tourists visited during cherry blossom season. [Bloomberg]( This is Bloomberg Opinion Today, a collective bargaining agreement of Bloomberg Opinion’s opinions. [Sign up here](. Today’s Agenda - [Japan]( is not a lost cause. - [This deal]( should give the WNBA pause. - Doctors fear [Idaho’s abortion]( laws. - Rate hikes are a [housing faux pas](. Sometimes It’s Good to Be Soft New York might be 6,741 miles from Tokyo, but Japan’s soft power is visible everywhere in this city. NYU students aren’t just borderline addicted to [Muji pens](. They’re [reading manga]( at the bookstore, spinning to [Kyoto]( at SoulCycle, ripping [onigiri]( at lunch, slurping [Himokawa udon]( for dinner and catching the season finale of [Shogun]( before bed. Oh, and don’t forget the [skincare fridge]( in the dorm that’s stocked with Japanese serums, pimple patches and cleansers. “This obsession brings more people to the country,” Gearoid Reidy explains in his latest [long read](. Although some of our travel nowadays has been [bastardized]( by Instagram and TikTok — I have seen enough photos of dimly lit ramen shops and rain-flecked [crosswalks]( to last a lifetime — tourism is “perhaps Japan’s greatest [economic success story]( of the past 30 years.” Last month alone, a record [3.1 million tourists]( visited Japan during cherry blossom season, evidence of the country’s strong position on the global stage. It hasn’t always been this way. After the Nikkei 225 hit a 20th-century high in 1989, Japan descended into an era in which it was overshadowed by China. This is frequently referred to as Japan’s “Lost Decade,” or ushinawareta junen. Yet that decade turned into decades, and what initially appeared to be a temporary funk became Japan’s status quo. When Gearoid arrived in rural Hiroshima to teach English in 2003, he saw decline all around him: “Deflation was persistent; cost-cutting was everywhere.” But in the years since, Japan (with [the help]( of some dude named Warren Buffett) has made a stealthy comeback — almost like a child star that grew up too fast, had a big fall from grace and is now [making a name]( for themselves again. (Yes, I’m talking about [Lindsay Lohan](.) The most obvious evidence of this is Japan’s stock market, which has made a round-trip journey from its previous peak: But the country’s redemption goes far beyond data points. Gearoid says it can be seen in “everything from global [diplomacy](, financial and corporate [vitality](, military [strategy](, pop [culture]( and even [sports](.” Consider, for a moment, that South Korea’s K-pop industry is [valued]( at some $5 billion. Japan’s anime market [alone]( is worth six times that, and is expected to more than double in the next decade. The only thing looking lost in Japan these days is the [Legend of Zelda]( hero [Link](, and that’s [on purpose](. “Japan is no ‘middling country of declining importance’; it’s an active player in the world once more,” Gearoid writes. Read his feature in its entirety [here]( for free. About That $28 Million Nike Deal ... Photographer: Sarah Stier/Getty Images North America On the surface, Caitlin Clark’s [forthcoming deal]( with Nike is amazing. After all the uproar on social media about the WNBA paying her pennies, sis is FINALLY getting the bag she deserves. But Adam Minter [says]( her purchasing power is a double-edged sword: “The uptick of endorsements and other opportunities for some athletes over others disrupts the league’s goal of keeping a competitive balance.” And more than that, it causes some players to risk their [health]( and [safety](. Since its inception, the WNBA has relied on a hard salary cap. Only 21 of the league’s 144 players will make more than $200,000 this year. “Unable to fully monetize their skills during the summer WNBA season, players have long plied their trade in [overseas leagues]( that don’t impose salary caps,” Adam explains. Which, yes: Brittney Griner wasn’t in Moscow just to see Red Square! She was there because she inked a deal to [get $1 million]( from the UMMC Ekaterinburg club — something she’d done [since 2014](. “To its credit, the WNBA recognizes its players’ predicament and has [tried to help]( by connecting athletes with off-season marketing opportunities,” Adam notes. But it’s not enough to offset the balance. Adam says there’s an easy solution: “Re-open the current collective bargaining agreement and seek to raise salary caps and pay scales.” If there was ever a moment to push for a change, it’d be now, when America is rolling out [the red carpet]( for women in basketball. [Do the Math]( Why Does Life Feel So Expensive When the Economy Is Booming? The US is doing great by all traditional measures. The economy is booming, unemployment is low, and the inflation rate has dropped back to more normal levels. So why is everyone [so unhappy](? Consumer sentiment surveys are at levels associated with busts more than booms. The answer may have less to do with scary headlines, political squabbles and geopolitical tensions than the simple fact that an [alarming percentage of US workers]( are struggling to earn a living. — Nir Kaissar Telltale Charts Picture this: You’re a doctor in Idaho. A pregnant patient comes in and she’s not looking great. But you ask yourself, “Is she super duper sick, or is she just … sick? Does she have sepsis, or is that just her low blood pressure?” If your answer is “I don’t know,” then you might just decide to airlift — yes, AIRLIFT — her to another state. At least, that’s what doctors in Idaho [are doing]( because of the state’s draconian abortion law, which only allows an abortion to be performed if it is necessary to prevent the mother’s death: “One of the state’s hospital systems has reportedly flown six pregnant women to other states since January. Some Idaho doctors are recommending that their pregnant patients [buy insurance]( that covers emergency air transportation,” Lisa Jarvis [writes]( (free read). Sticky shelter inflation caught many people off guard, including [our columnist]( Conor Sen. “But the lack of supply in some regions and high mortgage rates have combined insidiously to keep homes expensive, pressuring rents higher as potential buyers find themselves stuck in the rental market since they can’t afford to buy,” he writes. “Perversely, elevated shelter inflation is a major factor leading the Fed to [hold rates]( higher for longer, hindering construction.” Although the central bank is aware of the problem, it’s a real pickle, and one that Conor’s not sure can be undone easily. Further Reading Traders were spooked today because [core inflation]( in the first quarter came in worse than expected. — Jonathan Levin If Europeans want to achieve net-zero carbon emissions, their investments need [radical change](. — Bloomberg’s editorial board Having a kid right now doesn’t make you a moron, even if the [“Eco-Nazis”]( say otherwise. — Mark Gongloff After a century with [the US grid](, we still haven’t figured out how to send electricity from coast to coast. — Stephen Mihm [Frank Field]( demonstrated a political path that avoids the evils of both time-serving and trivia. — Adrian Wooldridge Tennessee Republicans would rather turn [teachers into gunslingers]( than vote for gun reform. — Mary Ellen Klas Has Germany lost its [famous work ethic](? The country must find ways to keep people engaged. — Chris Bryant Meta investors must [ask themselves]( one thing about Mark Zuckerberg: Do they trust him? — Dave Lee ICYMI [Alphabet]( beat revenue estimates. US [economic growth]( slid to a near two-year low. Harvey Weinstein’s rape conviction [got overturned](. Kickers Andy Baraghani’s [vinegar toast]( is a thing of beauty. London’s [military horses]( are in serious condition. Gmail accidentally turned into [a diary](. [Tuna salad]( is anything you want it to be. People are [calling the cops]( on cicadas. Notes: Please send [tuna mayo onigiri]( and feedback to Jessica Karl at jkarl9@bloomberg.net. [Sign up here]( and follow us on [Threads](, [TikTok](, [Twitter](, [Instagram]( and [Facebook](. Follow Us Like getting this newsletter? [Subscribe to Bloomberg.com]( for unlimited access to trusted, data-driven journalism and subscriber-only insights. Before it’s here, it’s on the Bloomberg Terminal. Find out more about how the Terminal delivers information and analysis that financial professionals can’t find anywhere else. [Learn more](. Want to sponsor this newsletter? [Get in touch here](. 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