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Japan household spending drops fastest in 8 years

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So long as household spending remains stagnant so too will the economy as a whole. This reflects a low level of consumer confidence and an instinctive awareness of the weaknesses of the economy. The Abe "arrows" policy was based on the ideas that Japanese are economic animals whose behavior can be stimulated or manipulated. The government would better serve the people by addressing the anxieties that people have, the demographic time bomb that has already exploded, the notion of having to husband resources to trickle out over a long period of aging, the comparative lack of young people and the lack of dynamic opportunities for them.

Companion article says do not worry about drop in inflation. That is correct in a perverse way. The real problem is the lack of consumer confidence which then explains the decline in inflation.

3 ( +3 / -0 )

liarsnfoolsFeb. 18, 2015 - 07:22AM JST So long as household spending remains stagnant so too will the economy as a whole. This reflects a low level of consumer confidence and an instinctive awareness of the weaknesses of the economy.

The lifetime or full time jobs has been declining for decades. Problem with Japan is that part-time positions now make up almost 40 percent of the workforce. These jobs also earn about 40 percent less per hour than full-time positions and they accounted for all of the Japan’s job growth in the last decade. Majority of the employment offers are for temporary positions. It’s a permanent, low-wage existence and it's the biggest problem. There people don't have much money. Parents don’t want their children to marry temps, banks won’t give them home loans, and employers don’t want to spend money training them.

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sfjp330Feb. 18, 2015 - 07:35AM JST

The lifetime or full time jobs has been declining for decades. Problem with Japan is that part-time positions now make up almost 40 percent of the workforce. These jobs also earn about 40 percent less per hour than full-time positions and they accounted for all of the Japan’s job growth in the last decade.

They also don't get any bonuses and the reason that this year's shunto talks will make not a slight bit of difference to the trend of a declining domestic economy.

Even Toyota's Japanese workforce is 70% yearly contract workers and Toyota might increase base pay by 4% this Spring, but 70% of their workforce won't be getting it.

If Abe were really serious about raising salaries, he would double the minimum wage and change the family tax code.

Before people splutter all over their computers, at this whiff of communism. If Tokyo minimum wage were doubled, it would just bring it over the minimum wage being paid in London and below the living wage being promoted for London workers.

Abe is not particularly clever - his brother's words not mine - and the people pulling his strings are the usual triumvirate of the LDP, Japan Inc and Kasumageseki Mafia, who see the sole role of the Japanese population as working till they drop, replenish state coffers with their meager wages and use those replenished state coffers for the Japanese elite to walk big on the international stage.

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The drop—the biggest percentage fall since 2006 came partly in response (to a sales tax hike) and the impact of bad weather in summer,

Aha you're pulling our collective legs! It's simple - no ome has any money for reasons I don't need to mention.

1 ( +1 / -0 )

Can't spend what you don't have... unless you are the government.

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Japanese household spending in 2014 declined at its fastest pace in eight years, official data showed Tuesday

Fear not folks. Certain posters here have assured us all that things are getting better, so this is not real news. Yeah, right!

-4 ( +0 / -4 )

I run a business and our female employees are always coming to us saying that they're getting married and want to work only 1 million worth, which is hard for us since we have work that needs doing, can't be keeping everyone's hours so low. A big solution would be to eliminate the 扶養 system so everyone can work whatever they need to work, and pay the taxes they need to pay. For the sake of women and this country, change this system!!

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The numbers are misleading. Households spend a lot in Q4 2013 and Q1 2014 due to the VAT increase last spring. The drop will be even larger next quarter, and in Q2 2015 there will be a large increase in household spending.

0 ( +0 / -0 )

Whoops!...surprise for many, not for me though. Companies-- get those wages up or this will continue. Your selfishness is making this worse.

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