Take our user survey and make your voice heard.
business

Japan business lobby chief hopes for gov't efforts to end deflation

16 Comments

The requested article has expired, and is no longer available. Any related articles, and user comments are shown below.

© KYODO

©2024 GPlusMedia Inc.

16 Comments
Login to comment

*In a speech at the annual convention of Kishida's ruling Liberal Democratic Party, Masakazu Tokura, chairman of the Japan Business Federation known as Keidanren, said the nation's economy has been on an *upward trend on the back of robust wage growth.

Without a doubt Kishida's LDP and Tokura-san and his Keidanren big wigs have seen robust growth in their assets.

https://eastasiaforum.org/2022/06/26/kishida-retreats-from-new-capitalism/

The problem is the LDP and Keidanren refuse to see this does not apply to the vast majority of Japanese residents.

0 ( +7 / -7 )

“nation's economy has been on an upward trend on the back of robust wage growth”

I haven’t noticed it, unless he is talking about stocks & shares.

-2 ( +7 / -9 )

hopes for gov't efforts to end deflation

Ordinary Taro who works in small media enterprise expect their salary will increase.

-4 ( +3 / -7 )

That’s rich, coming from this guy. His business buddies are the ones mainly responsible for Japan’s many years of deflation: They cut their workers’ nominal and real wages for a couple of decades after the bubble popped -- and kept going even after their profits surged.

The government can’t do much. Maybe hike cut its spending. The BOJ is the one with the best tools.

4 ( +5 / -1 )

I just don't see how the economy can recover without huge demographic changes (earners make up too small a proportion of society due to low birth rate and long life span). And huge demographic changes require immigration reform. Anything else is just in the noise.

1 ( +2 / -1 )

Strange as it sounds, weak Yen, down approx. 50% in 3yrs, contributes to daily living cost inflation, everything from food to energy. Added costs contribute to land price deflation, people have less money to buy land, less money to have kids, so it's accelerating depopulation.

Japan in 2023, population death rate only accelerated (off a smaller population base) a bit over 1% vs. 2022, while births, dropped b/w 5 and 6%, marriages also dropped around 6% vs. 2022. Depopulation only accelerated about 7%. The good news?

Demographers with Covid modeling expected the death rate to accelerate over 10% last year. No matter, collapsing aging population = land deflation.

WHY for Yen depreciation, Biden Admin increased US money supply approx. 50% in 2021, along with record US Govt. deficit spending US inflation soared, US interest rates sharply increased, most global currencies outside of Europe, were crushed, including Japan.

Global inflation today terrible, land prices and deflation taking place in many areas, like Japan, "you can't eat land".

0 ( +2 / -2 )

@JeffLee Spot on!

-3 ( +3 / -6 )

They "Keidanren" who think nothing besides maximizing their profit have strong influence to LDP regime with political contribution, snatching even taxes that should be used for general citizen, and demand politics disregarding infection measures, even killing social vulnerables.

-2 ( +1 / -3 )

The surge in taxes is going to eat any wage growth anyway.

Like many wealthy countries, the greed of politicians never stops.

There still on the Fukushima tax I paid when I was working there. Until 2037 for all Japanese households but not the companies !

https://www.reuters.com/article/japan-fukushima-anniversary-tax-analysis/analysis-japans-solidarity-quake-tax-may-be-model-to-foot-pandemic-bill-idINKBN2B205Q/

-1 ( +2 / -3 )

If this is the genuine belief of Masakazu Tokura, chairman of the Japan Business Federation (Keidanren)

All one has to do, is to compare weekly receipts of retail price fluctuations at the local supermarket. to get the picture, we are all up poo creek without a paddle soon to scream don't make a wave!!

1 ( +1 / -0 )

Same old guff. They have been on about this for two decades and nothing has been done. I doubt if this round of pleas and pledges are going to make any difference.

0 ( +0 / -0 )

Actually we may be at a turning point with the start of a wage-price inflation spiral!

I know it seems crazy as we have been used to the total opposite over the past 30 years, but things never stay the same forever.

For what is it worth here is a very interesting article on the subject

https://open.substack.com/pub/japanoptimist/p/go-for-it-ueda-sensei?r=1rzr6d&utm_campaign=post&utm_medium=web

0 ( +0 / -0 )

At least with deflation, which was very mild, stagnant wages meant real wages rose albeit very slightly. Now things are much worse with stagflation and higher taxes. Meanwhile Keidanren and their LDP sidekicks live in a bubble. They enjoy the benefits of higher profits and rising stock prices while the average Taro is worse off. It's no surprise growth is anaemic and the birthrate continues to call. Bring back deflation I say.

2 ( +2 / -0 )

I haven't noticed any signs of deflation recently. In fact everywhere I look I see signs of inflation. This is particularly noticeable with prices in the supermarkets. I don't suppose Masakazu Tokura spends much if any time shopping in supermarkets though.

0 ( +1 / -1 )

Last November, this Tokura had demanded early restarting Shika nuclear plant at Noto peninsula.

But less than 2 month later, new year's day quake brought many damages to nuclear plant, Hokuriku power corporations who repeat deceptive announcements had denied media coverage at the place until this month.

Present Japanese ruling class disregard safety.

-2 ( +0 / -2 )

Governments cannot control inflation or deflation, but inflation takes down governments. In Europe, inflation from energy sanctions, supply chain damage and Brexit are ending regimes.

0 ( +0 / -0 )

Login to leave a comment

Facebook users

Use your Facebook account to login or register with JapanToday. By doing so, you will also receive an email inviting you to receive our news alerts.

Facebook Connect

Login with your JapanToday account

User registration

Articles, Offers & Useful Resources

A mix of what's trending on our other sites