OK, sure. No regular reader of this blog would expect anything other than comments on the state of California's Central Valley. The headline above would seem to be out of step with the theme of the blog. However, it is often educational to compare.

Recently, the nation of Japan has begun to see changes in the personal economics of its citizens. The number of Japanese earning poverty-level wages have increased to the double digits. This in an economy that has become a world financial power after rebuilding from World War II. The experience for the Japanese over the post-war years is to have had very low levels of poverty and a very high standard of living.

Tokyo, a city that rivals Mexico City as the most populous in the world, is also one of the most expensive to live in. It is disturbing to many Japanese economists that people may not be able to support themselves in this city. Economists cite a number of reasons why this change is being experienced in Japan.

First, economists say the average Japanese worker's mindset has changed from what it once was. Whereas employees in the past have been devoted to one company, desirous only of helping the company to achieve profits, modern day employees are more interested in how they can be rewarded for their hard work. Japanese workers are a lot less likely to stay with the same company for the entirety of their careers.

The disloyalty of employees cannot only be blamed on Japanese workers. A new reality has also set in for Japanese employers. Japanese companies are doing less to encourage employees to stick around. One major concern of economists is the movement towards the part-time careers. Employers like to offer part-time positions as a way of cutting benefits and to have the flexibility to hire and fire employees more quickly. This flexibility is also enjoyed by more and more workers, who like being able to have more time for recreation or families.

The end result has been to see more Japanese without jobs or with part-time employment that cannot pay for the expensive Tokyo lifestyle. There is an obvious dichotomy between these have-nots and the frivolous spending of the rich. While Japan continues to produce affluence, it is not shared by as a broad a population as it once was.

California is about the same size as Japan. Like Japan, California occasionally experiences earthquakes, and most of the residents live in the coastal areas. Yes, comparisons can also be made between the two economies.

California produces much wealth, with state officials often touting the California economy as being the world's 7th largest. Like Japan, California also suffers from a growing rift between rich and poor. The working poor of California live throughout the state, from the urban neighborhoods of its largest cities to the farming communities in the state's agrarian belts. The story in California has long been the same--some work hard and see nothing in return, and some strike it rich. There is opportunity for great wealth in this state. From Hollywood to Silicon Valley, Californians have some opportunity to earn extraordinary amounts of money. However, for many residents, those opportunities and dreams get dashed.

As there are many millionaires in the state that can afford high prices, the working poor often struggle to get by here. The wealth of California is by no means evenly distributed, a function of the free market society. Californians have long seen a need for social and legal rebalancing of incomes, though, to allow for all resident the opportunity to grow. The tax system takes more from the rich than the poor, in part to fund a variety of social welfare programs. The state's educational systems have long tried to make college affordable for all (although even this most cherished of Californian principles seems now to be questioned).

The problems of California are very similar to the growing problem in Japan. The affluent continue to live an extravagant lifestyle, while more no-benefit, part-time jobs are created and a growing number of working people are unable to afford the cost of living. Companies are looking to boost profits by cutting the costs of labor, while employees on both sides of the Pacific are less likely to stay long-term with a company. Politicians and business leaders must carefully consider the consequences of continuing current economic practices.