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Modernization and the Loss of Japan’s Samurai Culture Benefited the Japanese People

Blog Post | Health & Medical Care

Modernization and the Loss of Japan’s Samurai Culture Benefited the Japanese People

Economic, technological, industrial, and other progress radically improved the life of the ordinary Japanese citizen.

Summary: In the mid-19th century, Japan’s feudal society underwent a profound transformation during the Meiji Restoration, embracing Westernization and modernization. The shift from isolationism to openness resulted in rapid industrialization and technological advancements, improving living standards, education, and social mobility for ordinary citizens. This article examines Japan’s journey from a closed society to a prosperous nation, dispelling romanticized notions of the “good old days” and highlighting the benefits of progress and innovation.


Imagine you’re a farmer in Japan in 1850. You pay homage to your feudal lord, wear clothes of plain cotton, eat rice and fish, and are mostly preoccupied with surviving the occasional famine and outbreaks of disease. You likely have no education. Fifty years later, life has changed beyond recognition. Farmers now have an education, have fertilizer to farm with, have access to vaccination, and can use the telegraph and the postal service. They have more money to spend, more leisure time, and access to mass media.

The 2003 movie The Last Samurai portrays Japan during this period of modernization. The film laments the loss of traditional samurai culture amid rising Westernization. The film is inspired by the Satsuma Rebellion, a revolt from disaffected samurai amid the loss of their privileged position in society.

Longing for a privileged past is not unique to Japan; many in Europe romanticize the medieval era as one of knightly chivalry. However, such portrayals usually look at history through rose-tinted glasses. The “good old days” is a common fallacy, with facts becoming more distorted the further one looks back in history.

What really happened in the era of The Last Samurai?

The period takes places after the Meiji Restoration, showcasing the Westernization of Japan. Before this period, Japan was ruled by Tokugawa shogunate, a military dictatorship that had dominated the island for over 260 years. It imposed the foreign policy of Sakoku—that is, one of extreme isolationism. Aiming to reduce the spread of Christianity and cement the power of the shogun, the islands of Japan became closed to foreigners. No one was allowed to enter or leave Japan, and foreign trade was virtually nonexistent. (There was some trade allowed from the Dutch through the island of Kyushu, notably in porcelain.) This period was one of peace, which many in Japan welcomed after the Sengoku Jidai (a period of civil war) of the 1500s.

Conservatives in Japan welcomed this closing of the country to foreign influence. At the time, Japan was dominated by the samurai class. Samurai, while traditionally warriors, had moved in peacetime to become aristocratic bureaucrats at the service of their daimyo, a feudal lord. Samurai had a monopoly on military force and controlled most of education. Merchants were seen as a lower class, even lower than farmers. Feudalism, a system where a lord would rent out land in return for labor from the peasantry, had ended in parts of Europe around 1500. Whereas competition among European powers had created the emergence of a middle class, Japan had remained socially, technologically, and militarily stagnant from 1639 onwards.

As described by Mitsutomo Yuasa in his study The Scientific Revolution in Nineteenth Century Japan:

The traditional society (feudalism) before the Meiji Restoration, namely the age of Edo of Tokugawa Shogunate, was based on pre-Newtonian science and technology, and on pre-Newtonian attitudes towards the physical world.

In 1853, Japanese isolationism came to an end. With the arrival of Commodore Matthew Perry demonstrating a textbook example of gunboat diplomacy, the United States forced an end to Japanese isolationism and the opening of Japanese ports to American trade. In the years that followed, Japan established diplomatic relations with the Western Great Powers and underwent a collapse of the ruling Tokugawa shogunate.

Japan then went through a period of rapid modernization, importing Western technology, ideas, and culture. Ian Inkster describes the impact:

By 1855, Western machinery and factory organization had been introduced at Nagasaki for the maintenance of warships, and a spurt of building began in 1860 under Dutch leadership. It was Englishmen who in 1867 constructed the first steam powered spinning plant, the Kagoshima Spinning Factory. . . . By 1882, the Osaka Spinning Company operated 16 mules, 10,500 spindles and was practically powered by steam. . . . From 1870 to 1872, 245 railway engineers arrived in Japan from Europe. . . . Telegraphic communication was also established by the British from 1871.

The industries that were revolutionized by foreign influence included the iron industry, mining, railways, electricity, civil engineering, medicine, administration, shipbuilding, porcelain, earthenware, glass, brewing, sugar, chemicals, gunpowder, and cement manufacture. Japan developed its staple industry and export product, silk manufacturing and spinning, under guidance from a Swedish engineer using Italian methods. The silk industry also employed a large amount of female labor in Japan, with more women in the industrial labor force in Japan than in any other country in Asia.

The development of technological innovations improved Japanese industry. Ryoshin Minami showed the growth in total horsepower between 1891 and 1937 was in the order of 13 percent annually. The figure below shows the growth rate of development of primary industries during the period between 1887 and 1920, as well as overall economic growth. In many of the years during that period, growth in private non-primary fixed capital was in the double digits.

By the 1890s, Japanese textiles dominated the home markets and competed successfully with British products in China and India. Japanese shippers were competing with European traders to carry these goods across Asia and even to Europe.

The Satsuma Rebellion occurred in 1877, as Japanese government restricted the ability to carry a katana (long sword) in public. Regardless of one’s thoughts on the right to bear arms, the reduction in the power of the samurai class was a win for ordinary Japanese people. Having access to modern medical techniques, transportation, and goods benefited the whole society, rather than just feudal elites. Indeed, many of the samurai were able to adapt to their new roles in a modern Japan, working in business or government. In the 1880s, 23 percent of prominent Japanese businessmen were from the samurai class. By the 1920s, the number had grown to 35 percent.

By 1925, universal manhood suffrage had been implemented, a stark contrast from the Tokugawa shogunate. The social structure had loosened, allowing societal advancement far more easily than in the feudal era. By 1897, 95 percent of citizens were receiving some form of formal education, in contrast to 3 percent in 1853. With a more educated population, Japan’s industrial sector grew significantly. Of course, the new system still had its problems, such as labor strikes and industrial unrest. However, Westernization brought far more economic freedom to the Japanese people. Attitudes to commerce changed. Merchants rose from being the lowest class to becoming a vital part of the burgeoning middle class.

In Japan, progress was seen in economics, science, technology, education, consumer goods, industry, and social mobility. Society and the traditional order had been uprooted, in an example of Schumpeterian “creative destruction.” The inflow of new ideas, of new ways of doing things, allowed people to become freer, wealthier, healthier, and better educated. The opening of Japan was fundamentally an opening to progress. By isolating itself, Japan fell behind the rest of the world. As it opened itself to competition, it was able to catch up, and in some cases, surpass other countries. And the ordinary citizen of Japan was better for it.

Demography | Personal Income

Generational Progress on Income Growth Continues in US

“Whether each generation of Americans continues to economically surpass the previous one has recently been called into question. We construct a posttax, posttransfer income measure from 1963 to 2023 based on the Current Population Survey Annual Social and Economic Supplement that allows us to consistently compare the economic well-being of five generations of Americans at ages 36–40. We find that Millennials had a real median household income that was 20% higher than that of the previous generation, a slowdown from the growth rate of the Silent Generation (36%) and Baby Boomers (26%), but similar to that of Generation X (16%). The slowdown for younger generations largely resulted from stalled growth in work hours among women. Progress for Millennials younger than 30 has also remained robust, though largely due to greater reliance on their parents. Additionally, lifetime income gains for younger generations far outweigh their higher educational costs.”

From Demography.

Blog Post | Cost of Living

Are Americans Getting Richer? New Data Might Surprise You

Workers have proven resilient over the past decade, despite inflation and valid affordability fears.

Summary: We introduce the American Abundance Index, which measures living standards by how many hours Americans must work to afford a standard basket of goods, rather than by prices or wages alone. The index uses time prices to show that for most US workers, purchasing power has generally risen over the last two decades, even amid inflation and public pessimism.


The resilience of the American worker is one of the most underreported stories of the 2020s. From red tape to import taxes, successive governments have erected barriers to success. Yet America’s workers have persevered and figured out ways to prosper.

A new American Abundance Index illustrates this. The project from Human Progress, an arm of the Cato Institute, reveals the steady rise of the average worker’s purchasing power. The premise of the index is simple: how many hours do you need to work, compared to the month or year before, to be able to afford the “basket of goods,” which is a standard set of household items and services that comprise the Consumer Price Index used to calculate inflation.

The “time price” is how many hours of work it takes to purchase the basket of goods. The “abundance” is how much of the basket one hour of work can buy. The story told by the index is a very good one: since recordkeeping began, “abundance” for average private sector workers comes out to a net increase of 13.8 percent.

It increased the past year, too. The index shows the average private sector worker saw prices rise by 2.7 percent from December 2024 to December 2025, while their hourly wages grew by 3.8 percent. This means workers could work 1 percent less to buy the same basket of goods. Put differently, workers could afford 1 percent more stuff.

The reason for this is that earnings have continued to outpace inflation. So long as wages increase faster than inflation, the worker gets ahead. And it’s not just desk jobs that have enabled workers to purchase the same amount of goods and services for fewer hours worked. The gain for traditional “blue collar workers” is even higher: a historical net increase of 18.4 percent since 2006.

Despite workers significantly increasing their purchasing power over the past two decades, the past five years have taken a toll. The self-inflicted pain of printing vast sums of money during the pandemic sent the annualized inflation rate to over 9 percent in 2022, far outstripping raises. While inflation is now mostly under control, it has taken time for the gap between wages and inflation to settle, and workers are only now just catching up after their losses during those inflation-heavy years.

Americans continue to rank affordability as a top concern and do not believe the government is doing enough to address the cost of living. These frustrations are understandable. Prices are still rising while tariffs and uncertainty strangle businesses and push consumer confidence to a 12-year low. America’s growth and prosperity story has always been one of fits and starts, and workers are right to demand that government gets out of their way. But the new data make clear that 21st century Americans can still be content about how far they’ve come and optimistic about how far they’ve yet to go.

This article was originally published in the Washington Post on 2/6/2026.

Blog Post | Cost of Living

Introducing the American Abundance Index

American living standards are best measured in time.

We are excited to share a new tool we’ve been building at Human Progress: The American Abundance Index—an interactive dashboard that tracks US living standards while adjusting for both inflation and rising incomes.

The idea is straightforward: how many hours do you need to work to afford the same basket of goods and services? Using Bureau of Labor Statistics data, the American Abundance Index converts price and wage growth into “time prices”—the amount of work time required to buy the Consumer Price Index (CPI) basket of goods and services—and “abundance,” which is the inverse: how much of that basket one hour of work can buy. When time prices fall, abundance rises, and each hour of work goes further. That’s the measure of affordability that actually matters.

Conceptually, this work builds off of Superabundance, a book by our editor, Marian Tupy, and his coauthor and Human Progress board member, Gale Pooley. Their core argument—that abundance is best measured in time—forms the foundation of the project. The index itself was built by our Quantitative Research Associate, Jackson Vann.

Users can select multiple worker categories, compare short- and long-run trends, and even see wage growth modeled to reflect real career progression rather than freezing workers in place. All the calculations are transparent and replicable, with the full dataset and code available on GitHub.


So what does the index actually say about American standards of living?

Over the past 12 months, inflation rose 2.68 percent while hourly earnings for the average private-sector worker grew 3.76 percent. As a result, the CPI basket became 1.05 percent more abundant. Since 2006, it has become nearly 14 percent more abundant—roughly equivalent to adding an hour of purchasing power to the average workday.

Blog Post | Cost of Material Goods

Why Your Groceries Are Cheaper than Kevin McCallister’s

Since 1990, grocery abundance has increased by 43.2 percent and pizza abundance by 285 percent for blue-collar workers. If you were upskilling, it was 186 percent for groceries and 610 percent for pizzas.

Summary: A famous grocery run in Home Alone appears to illustrate how much nominal prices have risen since the film came out in 1990. But a look at sticker prices alone misses the bigger picture. When costs are measured against what people earn, everyday food looks far more affordable than it once did. Thanks to rising nominal wages and ongoing innovation, modern households enjoy far greater abundance, even when nominal prices appear higher at first glance.


In the 1990 movie Home Alone, eight-year-old Kevin McCallister went grocery shopping. He bought a half gallon of milk, a half gallon of orange juice, a TV dinner, bread, frozen mac and cheese, laundry detergent, cling wrap, toilet paper, a pack of army men, and dryer sheets. His bill came to $19.83.

Professor Christopher Clarke at Washington State University does an annual price analysis of Kevin McCallister’s shopping basket and estimates that today’s price for those items would be around 114.5 percent higher ($42.54) than was the case in 1990. But, as my readers know quite well, things can become more expensive and more affordable at the same time. How is that possible? It’s possible because wages typically increase faster than prices. In the past 35 years, blue-collar hourly wages have increased by 207.7 percent, from $10.32 per hour in 1990 to $31.76 today.

Kevin’s basket in 1990, in time prices, would have cost 1.92 hours compared to 1.34 hours today. The time price of Kevin’s basket has fallen by 30.2 percent. For the time it took to earn the money to buy the basket of goods in 1990, you get 1.432 baskets today. Grocery abundance has increased by 43.2 percent.

If you got your first job in 1990 as an entry-level worker and have been upskilling for the past 35 years and are now an average worker, your hourly wage rate increased 511.3 percent: from $6.03 an hour in 1990 to $36.86 an hour today. Your grocery basket time price fell by 65 percent, giving you 2.86 baskets today. Your grocery abundance has increased by 186 percent.

In the movie, the McCallister family also orders 10 pizzas, and the bill comes to $122.50 (plus tip). That would put the time price for 1990s blue-collar workers at 11.87 hours, or about one hour and 11 minutes per pizza.

Professor Clarke did a price check on how much 10 classic cheese and pepperoni pizzas cost at a Little Caesars pizzeria near the McCallister’s home today—it comes to only $98.09 (plus tip). The nominal price has actually shrunk! That would put today’s time price at 3.08 hours for the 10 pizzas, or about 18.5 minutes per pizza. The time price has fallen by 74 percent. That means that for the time it took to earn the money to buy one pizza in 1990 you get 3.85 pizzas today. Pizza abundance has increased by 285 percent. If you are an upskilled worker, your pizza time price fell by 85.9 percent, giving you 7.1 pizzas today for the time price of 1 in 1990, thus increasing your abundance by 610 percent.

Hopefully you didn’t forget to count the kids before taking off on Christmas vacation this year! And remember, life can become more abundant every day if people are free to innovate.

Find more of Gale’s work at his Substack, Gale Winds.