business

Weak yen helps drive Japan earnings, but no cure-all

12 Comments
By Peter Brieger

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© 2013 AFP

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YubaruMay. 20, 2013 - 09:55AM JST

Gasoline prices have jumped, food costs for daily consumption have risen sharply, the consumption tax is going up, income and reconstruction taxes are up, everything seems to have gotten more expensive and he wants me to spend more? Where is the money going to come from? Not my employer that's for sure!

I couldn't have said it better. Just paid the bills and had to pay 10% more than last month. That's 10% less spending on the Japanese economy.

Abenomics is hairbrained.

3 ( +5 / -2 )

the boost to exports will outweigh the cost of higher imported materials, most importantly itll keep more jobs in Japan. more jobs leaving Japan means less tax revenue for the governement. to all you lovers of luxury imported good, countries economies arnt built on imports there built on exports. Just look at Germany one of the few Euro countires that is doing well. and you all know about China.

1 ( +1 / -0 )

The average Japanese family is worried about the future. So shopping is in decline, restaurant use is dropping off and people are still hoarding. Abe wants them to spend, but they won't until they feel safe doing so. Companies want profits but won't raise salaries so workers begin to spend. See the cycle here?

Traditionally speaking here, Japanese households dont spend when money is tight, and like you mentioned hoard their cash.

Personally speaking I dont see how Abe can even think that people will spend more money either with the ever increasing costs of goods, services, and taxes too.

Gasoline prices have jumped, food costs for daily consumption have risen sharply, the consumption tax is going up, income and reconstruction taxes are up, everything seems to have gotten more expensive and he wants me to spend more? Where is the money going to come from? Not my employer that's for sure!

1 ( +3 / -2 )

That's 10% less spending on the Japanese economy.

Or another 10% that lines some corporate pocket!

1 ( +1 / -0 )

big worry is my retirement. no way in heck i expect the JP government to be solvent enough to pay...

I have the same concern.

1 ( +1 / -0 )

it is important that Y100/$ as, that even though this may not have that much impact on Large multi national but makes huge differenced to small to medium business and manufactures which Japan heavily relies on

1 ( +1 / -0 )

Hi, better to keep yen at 100 since if it loses more value it will affect import goods.

1 ( +1 / -0 )

Nonsense. This is temporary optimism. While the weak yen will benefit exporters, it is already clear that the heavy weight exporters do not intend to grow jobs here. They intend to cut costs and grow jobs in Myanmar and other cheap labor markets.

Like the US "recovery", no jobs means no real recovery. As long as wages remain low or continue to decline, consumers continue to suffer under rising prices and no compensation for it in salary, and uncertainty continues to encourage people to not spend money, there can be no recovery.

The average Japanese family is worried about the future. So shopping is in decline, restaurant use is dropping off and people are still hoarding. Abe wants them to spend, but they won't until they feel safe doing so. Companies want profits but won't raise salaries so workers begin to spend. See the cycle here?

Until this if fixed then all we are seeing now is an Optimism Bubble that will soon burst and leave Japan in worst off conditions if you happen to be the average working Taro.

0 ( +3 / -3 )

It's killing me this year, I effectively have lost roughly 25% of my income when reporting it for financial aid for my children in school in the US. Last summer 1 million yen was nearly $13K, this year I will be lucky if it is even $10K.

There goes the new computer.........

0 ( +1 / -1 )

the vast majority of my savings is safely in dollars, having taken advantage of the 70-80 yen rate the last few years. I am feeling good.

big worry is my retirement. no way in heck i expect the JP government to be solvent enough to pay...

0 ( +1 / -1 )

well if it is good for the economy they should raise my salary from a guy who works in a factory

0 ( +0 / -0 )

Abe has a bunch of economists working for him, the Nikkei have gone up a lot, Toyota and a bunch of other large corporations announced profits thanks to the weak yen, but of course that's not good enough for JapanToday experts !!!

It's great to see some of you guys having me me me attitude "what's in it for me", "i haven't got any raise" with deep knowledge of economics LOL

Abe has been going a much better job than the previous DPJ administarations

-1 ( +0 / -1 )

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