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Japan Inc wary about wage hikes as Abenomics sputters

13 Comments
By Tetsushi Kajimoto

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13 Comments
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Japan Inc always is wary of wage hikes. They've been saying the same thing for the past 10 years at least, if not 20. When times are good they say they can't hike wages to safeguard money against upcoming bad times. If and when times do go bad, they say they can't hike wages because they don't have any money.

Of course, the reality is the companies will scream and kick as soon as there's any economic headwind to fight against and will get bailed out by the government and more, so they're really just taking the money at both ends.

11 ( +11 / -0 )

Japan Inc always is wary of wage hikes. 

Not during the bubble years they weren't! It's only after the bubble popped that things stagnated, and then with all the government stimulus floating around, Japan Inc took the opportunity to make more money for itself and use the "loyalty" to the company to keep employees working.

It's going to get easier for the major corporations to refuse to give wage hikes due to the corona virus outbreak as well. Watch for the avalanche of excuses!

3 ( +6 / -3 )

What makes absolutely no sense to me, is that the other night, on HNK news, they reported that "mansion" prices here in Japan, have risen, on average, to selling prices that are HIGHER today than back during the bubble years.

Further proof that large construction businesses are making money hand over foot and putting the folks who purchase these units, further into debt!

The "easy" money policies are making it simple for many to get mortgages, but their debts will last for 20 to 30 years!

6 ( +6 / -0 )

This is hilarious. They were worried about raising wages in an up economy and now they are worried about raising wages in a down economy. If they are worried about raising wages on both sides, it means they will never increase salaries.

8 ( +8 / -0 )

Yubaru,

I read somewhere that a lot of regional banks in Japan have invested heavily using money borrowed from Japan's ultra low interest rates in constructing condos in Tokyo because they see very negative growth in their regional bases and as a consequence they have been offering nearly everyone who applies a mortgage.

A future sub-prime disaster awaits.

It is time the Japanese unions grew a pair and started strike action against these greedy companies.

5 ( +5 / -0 )

Yeah yeah yeah, lot of bla bla but the reality is that Japan average wage fell in 2019.

https://www.japantimes.co.jp/news/2020/02/07/business/economy-business/japan-part-time-workers-rise-wages-drop/#.Xkx6DS3M3OQ

6 ( +6 / -0 )

Fist post from David said it all .

The survey results underscore the challenge Prime Minister Shinzo Abe faces in generating a self-sustaining growth cycle needed to put a decisive end to deflation and boost inflation toward the Bank of Japan's elusive 2% target

When will this nonsense about 2% inflation end?....after 8 years of failure its time to admit its a pie in the sky target.

6 ( +6 / -0 )

It’s all about the elusive inflation helping the already fat cats. When will policies come out helping the average Joe? Not with Our Dear Leader supporting big biz. This is a prescription for implosion..which already shows since of happening.

5 ( +5 / -0 )

We've now got kids finishing up grade school who weren't even born when Bozo the LDP Clown started making all his economic promises.

How long does it take to realize he's full of crap and that the nation has been voting wrong all this time?

Yeesh Japan. Think harder. Vote smarter.

4 ( +5 / -1 )

Abenomics, based on stimulus and reform, is being undercut by the consumption-tax hike and employers practicing wage suppression polices.

5 ( +5 / -0 )

And once again, the third Arrow sinks deeper into Abe's quivering -- err... quiver. That's what happens when you guarantee and rush through corporate cuts and benefits to the rich and huge companies, then Simply "hope" and "urge" that the benefits trickle down to the general public, instead of guaranteeing the benefits to the latter before the former. Now, you have them about to do the opposite and cut pay, and just after the "necessary consumption tax hike" that has actually seen the Economy plummet, as predicted by even four-year olds that it would. The only good thing is that Abe how now lost his last allies -- business. His support is plummeting.

4 ( +4 / -0 )

It is skrinking not beacuse of corona virius or anything, it is srinking because of only talkiing and not working japanese. These japanese workers blamed hard-working foreign workers with back-stabbing methods. I have seen 2 at close range, one for more than 24 years and one for 1 year and 2 months. Just talk and no work in real work.

3 ( +3 / -0 )

Japan Inc wary about wage hikes as Abenomics sputters

And Abenomics will continue to sputter partly due to Japan Inc's wariness of wage hikes.

Classic chicken egg syndrome

1 ( +1 / -0 )

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