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Japan household spending falls 2.8% in September as wages slide

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45 Comments
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Just abolish the consumption tax. That would amount to a 10 percent wage-hike for every consumer.

18 ( +23 / -5 )

Difficult for me me to cut any spending as prices have been on the hike.

I am not sure on much those decrease or increase in spending are relevant. An increase seems to be positive but if it was continuous, we would reach a bubble state with a collapse some days

13 ( +19 / -6 )

BOJ please stop this stupid strategy of trying to create inflation at all cost hoping that company will increase wages more than inflation. We have a very clear proof with today figures that is does not happen.

Why is the BOJ is si stubborned I even though this strategy has proved to be a failure for 18 months

In a word where companies do not increase wage keeping price stable is better than voluntary creating inflation.

10 ( +13 / -3 )

Abolish consumption tax and then tax religion. The amount of tax-free money shrines, temples, and priests make is disgraceful.

9 ( +11 / -2 )

Well done Japanese industry . Now we cannot afford to buy your products because you don’t pay us properly. “You kinda shot yourself in the foot”

But Japanese companies are reporting record profits.

6 ( +10 / -4 )

Meiyouwenti....

Just abolish the consumption tax. That would amount to a 10 percent wage-hike for every consumer.

And how would the tax shortfall be made up?

4 ( +8 / -4 )

We have reduced our spending and stopped buying unnecessary items.

4 ( +5 / -1 )

Keep hearing about salary increases, but many people I know haven't received anything, or nothing like the 3.1% they are quoting. But prices are rising and like crazy, so yes people are feeling the pinch. But I really don't know what the solution is, is it to hike salaries like they have in the US and Canada and then have a Big Mac combo meal cost almost $17.00US? That doesn't seem to help anybody.

3 ( +12 / -9 )

And I'm not worried about the Japanese economy at all. Their problems are another kind of problems.

3 ( +5 / -2 )

Keep cutting back we need to teach the greedy price hikers they can’t get away with free money

2 ( +15 / -13 )

Japan household spending falls 2.8% in September as wages slide

Capitalist reality hits.

Despite all the talk of virtuous cycles of wage growth, Keidanren urging to businesses, LDP subsidies to small and medium businesses to raise wages, Rengo pathetic negotiations, New Capitalism ;unrestrained business will engage in a labor race to the bottom especially when it is aided and abetted by a one party ruling political structure.

Labor is dead and doesn't pay and is made to be exploited, make capital by hook or crook is the only ethic.

2 ( +15 / -13 )

As usual, when the going gets tough, the tough closes his wallet.

2 ( +8 / -6 )

Of course, wage increases NEVER keep up with inflation, in any country.

2 ( +8 / -6 )

They just only don't understand own capitalism, that's all. As the word stem already hints, it's about capital. In addition it is based on growth at all costs and that this money is working and flowing. Not a shrinking society, not strangling consumption, no de-motorization, no de-industrialization, not trying very hard to become like global south. And now the obviously still unknown trick is, that everyone has to have much capital, the poor enough for big consumption and the super rich for research, innovations and their realization by employment, production and distribution. That's how it works and highly probable, nothing else will.

2 ( +5 / -3 )

Can barely pay my taxes let alone spend more!

2 ( +5 / -3 )

Inflation by devaluation of Yen can help corporation raises wages and people spend more?

I don’t understand pls

2 ( +2 / -0 )

Inflation is out of control especially for the average person. I hear rumors of 4% inflation but all I see are food prices 300-400% up. Ffs 298 for 1 mid-small tomato?

They need to send us a bag of what they’re smoking to alleviate the pain.

0 ( +3 / -3 )

All across the world the rich are shooting for a 2 class system: Royalty and serfs. They won't try to fix anything as long as the bucks roll in.

0 ( +2 / -2 )

RakurakuToday  08:47 am JST

Why is the BOJ is si stubborned

Because BOJ are c..ts

-1 ( +6 / -7 )

Do people calling for the removal of consumption tax realize that more revenue by far is generated from consumption tax than income tax in Japan?

Cool you want to remove it, so go on.... Finish the equation. How are you going to make up the shortfall in tax revenue?

-1 ( +0 / -1 )

Someone mentioned ‘capital’ in a previous post.

It’s so very true;going into a Japanese home, I’m trying to find the most expensive item in the house or apartment-usually a TV. (Yes, really)

For all the hard work that was done in the bubble era and before, what have the Japanese got to show for it?

-1 ( +3 / -4 )

Just abolish the consumption tax. That would amount to a 10 percent wage-hike for every consumer.

First, I think you meant tax cut. Second, How are you going to make up for the lost revenue?

-2 ( +5 / -7 )

Workforce of Japan really works a lot!

I think, even if there was no inflation, wages should follow Japanese motivation to stay motivated.

Our World is currently on standby because of some serious conflicts between great economic/military powers as well. We cannot be hypocrites!

-2 ( +3 / -5 )

@ William

It works a lot perhaps but not very effectively since Japan has one of the lowest productivity rates in the OECD.

indeed this is one of the biggest problem of Japan. I just look at the data and read that Japan ranks 25 th in the world when it comes to productivity.

it is 42% lower than US and 40 %lower than Germany.

This is at the expenses of their personal and family life.

-2 ( +4 / -6 )

It's like: "Job" bigger then "Wage"

-3 ( +2 / -5 )

Don't worry, deflation is returning. At least I can get eggs for 230 yen at the moment. Seems they going down to less than 200 again, where they belong.

Wages will also return to 1990 levels, where they belong. /s

-3 ( +1 / -4 )

Japan philosophy about job and wage is completely different from the West.

It's like: Job Wage

-4 ( +3 / -7 )

Western philosophy tends to be more corruptive to the detriment of many.

And in Japan its workforce is highly reliable to the detriment of few.

The Sacrifice exists in Japan as a whole.

If You worked there, you will understand.

-4 ( +3 / -7 )

Why is the BOJ is si stubborned I even though this strategy has proved to be a failure for 18 months

I suspect it is just a ruse.

The real purpose is to bankroll profligate government spending, and prevent a sovereign debt crisis.

Japan is choosing an inflation crisis instead.

They will continue to make excuses and continue to print more money.

And after their latest excuses are exposed, they will change the goalposts again.

Like that other person often said, keep selling yen until you still can…

-4 ( +2 / -6 )

Yes don't keep any funds in the poison yen, invest in US Dollars, Swiss Francs and Gold.

Don't spend any money unless absolutely necessary for daily living requirements.

-4 ( +3 / -7 )

Japan is finished.

that’s the short answer.

the long one nobody wants to hear

First, Japan is doing very well. Japanese companies are making record profits, everyone who wants a job has a job.

The west is finished. Just go take a hard look.

-5 ( +3 / -8 )

The blind leading the blind in Japan...

LDP is a parasite.

-5 ( +10 / -15 )

Well done Japanese industry . Now we cannot afford to buy your products because you don’t pay us properly. “You kinda shot yourself in the foot”

-7 ( +17 / -24 )

Japan is finished.

Nintendo hikes profit forecast

 

In the west..

WeWork, once the most valuable startup in the county, files for bankruptcy.

 It is your logic that is finished

100% on the money. 

Thank you,

-7 ( +2 / -9 )

Nominal wages, the average total cash earnings per worker including base and overtime pay, rose 1.2 percent to 279,304 yen for the 21st consecutive month of climb, but they failed to keep up with rising price

This one provide good explanation, some people got their wage increase but that won't keep up with price increase. So buy less things is the option they have thanks to J Govt.

-8 ( +9 / -17 )

Prices keep rising and our wages just stay the same.

-8 ( +12 / -20 )

First, Japan is doing very well. Japanese companies are making record profits,

Just because companies are making profits doesn't mean the people are doing well.

everyone who wants a job has a job.

Sure- if you are ok with 200,000 yen a month and ridiculous amounts of overtime. If that's your definition of doing well then sure- Japan is doing great

The west is finished. Just go take a hard look.

Really? because most countries in the west are doing better economically than Japan.

-9 ( +10 / -19 )

The blind leading the blind in Japan...

LDP is a parasite.

Well said dan!

-9 ( +5 / -14 )

Well done Japanese industry . Now we cannot afford to buy your products because you don’t pay us properly. “You kinda shot yourself in the foot”

exactly. stupid and shortsighted.

Just abolish the consumption tax. That would amount to a 10 percent wage-hike for every consumer.

Exactly. And slash the income tax on families. Inflation hits 2 fold when you have more than 1 or 2 mouths to feed.

Prices keep rising and our wages just stay the same.

Precisely

Japan is finished.

that’s the short answer.

the long one nobody wants to hear

This, I fear, is 100% on the money. No pun intended.

-16 ( +11 / -27 )

A great example, lol. You do realize WeWork is owned by Softbank ( a Japanese company ) which got WW for $8 billion 2 years ago. It appears what is finished is your "expert " credibility, merci.

Well said mate!

-16 ( +5 / -21 )

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