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Over 80% of major Japanese companies expect economy to grow in 2018

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A sign that Abenomics is having an effect. Still gotta tackle the inequality, though.

0 ( +4 / -4 )

A sign that Abenomics is having an effect. Still gotta tackle the inequality, though. come on everybody knows the world economic recovery is entirely of Trumps making, make the world great again

-1 ( +3 / -4 )

major Japanese companies 

When Japan is made up 90% of smaller companies this figure means nothing except to the rich shareholders of the major companies!

-1 ( +2 / -3 )

Regarding Prime Minister Shinzo Abe's request for a 3% wage increase, Japan Inc. showed a largely unenthusiastic response. Only five companies said they support the premier's request while 61 said a wage increase is a matter that should be decided by each company and industry.

Show's you who the boss is and it isn't the leader of the national government. Of course they're unenthusiastic. Have you ever met a boss that wants to pay his employee's more? They do exist, but by in large if you can get away with paying less, you will do so.

A sign that Abenomics is having an effect. Still gotta tackle the inequality, though.

No chance when Japan Inc has the attitude demonstrated above.

Abe has a couple of options He could mandate regular reports from company heads as to why they can't pay more. See if their arguments stack up. If not, get the stick out! But then you might get into issues of financial confidentiality and the worry competitors get access to the reports. You could do it through some sort of industry association.

Or, you can do what a country like Australia does, and just mandate regular, yearly meetings with representatives from companies and unions regarding rates of pay across a range of industries with the view to slowly but surely increasing wages over time. Its a negotiation. Often the rates of increase are very low, but the trend is positive.

One thing is for sure, the status quo arrangement is not going to solve the problem of a lack of wage growth in Japan dragging on demand and stifling growth.

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Looking at that picture, gender equality is on the other hand not anywhere near growing anytime soon.

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When salaries start to rise then I'll believe it...

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Over 80% of major Japanese companies expect economy to grow in 2018?! One day of the next day will the right answer...That's what companies have to understand not to compromise government New Year promises.

-1 ( +0 / -1 )

Japan does on average, grow. Just the growth rate is lower than elsewhere.

Most companies ... said their retained earnings have been increasing.... 19 said such funds will be spent on boosting capital investment.

This is a key point - it is not the case that ‘retained earnings’ are sitting under the company futon doing nothing. There have been proposals to double-tax such ‘retained earnings’, but this would mean those retained earnings could not then be spent on boosting capital investment (or hiking wages even). Double taxing such earnings would result only in Abe and Aso having the cash blown in the name of the latest fad, without achieving value for money.

On what economic steps they want the Abe administration to introduce, regulatory reform was cited by the largest single group

Funny, didn’t Abe announce just such a policy when he was elected back in 2012?

Meanwhile, 51 expressed concerns about the government's fiscal reform policy.

Don’t they know Abe’s government can just hit the print button? Abe’s central planners should prioritize a re-education program to ensure these fools are brought into line for the sake of us all.

-1 ( +0 / -1 )

Just the growth rate is lower than elsewhere.

Japan's GDP growth per capita is around the OECD average.

"When Japan is made up 90% of smaller companies this figure means nothing...

Many of those companies are suppliers to the major corporations, which tend to set the trends for everyone else.

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kurisupisuJan. 3 08:25 pm JST

When salaries start to rise then I'll believe it...

Exactly.

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Because they're not paying their workers a single dime! Only thinking about their company's international expansion, while leaving Japanese workers underpayed! It's a serious form of capitalism we witness, only benefiting the board of the companies.

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only one company said it will increase wages when it has extra funds to spare

Hear that, trickle-downers?

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a recovery in corporate capital investment and personal spending, but also remained cautious about hiking wages

The magical ability to increase personal spending while not hiking wages?! This has nothing to do with people.

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It's a serious form of capitalism we witness, only benefiting the board of the companies.

Captalism primarily benefits shareholders of companies, and importantly, anyone who defers some consumption and saves some money can become a shareholder themselves. (If one isn't able to save, seek a better paying job and then do so.)

Hoping some money will "trickle-down" from somewhere is futile.

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