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Analog Still Big In Japan (bbc.com)
An anonymous reader writes: BBC News reports that Japan, the island nation famous for robotics, 4G phones, bullet trains and corporate tech giants, is actually run by fax machines, human traffic lights, and 4.2 million small to medium-sized companies. Wary of connecting to networks for fear of data theft and hacking, Japanese office workers average just half the productivity of their American counterparts. Whether this conservativism in IT can prevent automation and robots from replacing people remains to be seen. However, the use of cassette tape recorders, hand-written data disk mailers, and 1997-era e-mail systems with near zero storage definitely hurts competitiveness in the global market.
"The purpose of a business to generate profits for the owners. A beneficial side effect is the creation of goods an services. "Keeping people busy" is neither a purpose nor a benefit."
No, that is the capitalist purpose of a business. It's possible that other people have different definitions as to the purpose of a business.
You sound like a Stalinist. The purpose of an association of people is whatever they damn please, not your quasi-religious goal of "profit".
As for the rest of your argument, a perceived inefficiency because nobody knows how to increase efficiency is practically equivalent to one deliberately introduced. As long as Japan is happy with its system, and doesn't require it to compete where relevant with external systems, there is no reason for it to change.
It's like wandering into 1850 with a digital computer and pointing out how so many people are suddenly a burden on society. Nope - they're exactly where they were two minutes ago, contributing to society. Maybe your computer gives them a version of society they prefer, or maybe not.