politics

Boosting middle class incomes a key policy for Kishida

41 Comments
By Keita Nakamura

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vowed to create a "new Japanese-style capitalism" to narrow income disparities through the redistribution of wealth and to move on from the "neoliberal policies"

Another Japan style like Abenomics, does it work?

Just check how Tokyo Stock Exchange move.

https://japantoday.com/category/business/tokyo-stocks-plunge-as-new-kishida-gov't-disappoints-market

5 ( +9 / -4 )

Why be the head of the nation if all you are going to do is to follow the policies of someone else?

17 ( +19 / -2 )

They should levy a tax on corporation property,to finance schools ,like they do in America,in Japan corporation use municipal services and should pay their share to the community

11 ( +14 / -3 )

I guess you're now regretting raising the consumption tax, eh? Told you so.

"more generous tax incentives to encourage companies to raise wages for the middle class." 

Good grief. How many "generous incentives" do corporations need? This is what led to the problem in the first place. This should read "harsh disincentives for those who refuse to give raises in line with their earnings growth while raking in big profits."

18 ( +21 / -3 )

Why be the head of the nation if all you are going to do is to follow the policies of someone else?

A Prime Minister is not the head of a nation, just the temporary representative of his/her party. He has to push through what his party leaders want. If he is one of the unusual leaders with a strong personality and a certain amount of charisma, he could become a national leader and change course. There are those rare politicians who play it safe and keep their head down until they get a hold of some power, and then surprise everyone by taking charge. No sign that Kishida is such a person, but let's give him a couple months to be fair.

-6 ( +2 / -8 )

Get rid of the Haken sha-in system, punish black-kigyo accordingly and have them follow labor laws. Then he talk about boosting the middle class.

22 ( +23 / -1 )

But while the economic model boosted large companies and people on high incomes, benefits have yet to trickle down.The new prime minister has vowed to create a "new Japanese-style capitalism" to narrow income disparities through the redistribution of wealth and to move on from the "neoliberal policies" adopted by Junichiro Koizumi, who led the nation from 2001 to 2006, under which divisions between the rich and poor widened, according to Kishida.

I am beginning to think with how much this topic is being floated through a semi-official channel like Kyodo that it may just be electioneering. If Kishida does think the LDP neoliberal policies have damaged the economic prospects of working Japanese, change it.

Make corporate tax breaks and subsidies contingent upon fair wages in line with productivity. Institute much more progressivity in taxes, and as a poster pointed out yesterday, workers making under 200,000 yen a month having to pay upwards of 35% of their income in the variety of residency and other taxes. The wealthy undoubtedly pay a far lower rate.

The LDP being in power is a fait accompli. Just do it!

11 ( +13 / -2 )

@Yrral

They should levy a tax on corporation property,to finance schools ,like they do in America,in Japan corporation use municipal services and should pay their share to the community

Then you should promote people to vote for the CDPJ who wants to redistribute wealth to create a more equitable society.

Obviously LDP have no intention of making any change Kishida's key policy relies on his plan to urge the broader private sector to raise wages.

https://japantoday.com/category/politics/Kishida-aims-to-narrow-income-gap-through-pay-hikes#comment-2632793

8 ( +9 / -1 )

I am beginning to think with how much this topic is being floated through a semi-official channel like Kyodo that it may just be electioneering. If Kishida does think the LDP neoliberal policies have damaged the economic prospects of working Japanese, change it.

There were several Kyodo articles about Kishida's so-called desire to boost "middle class income" before the recent LDP leadership "election". Perhaps he's sincere, who knows, but given the people in his cabinet and the 70 year history of the LDP you'd have to be gullible in the extreme to believe a word of it.

15 ( +17 / -2 )

The company I work at just hired a new guy in his thirties for an engineering role. His salary is ¥165,000 per month. Even doubling that is still crap wages. Nothing will ever change in this country in any meaningful way.

20 ( +22 / -2 )

Abenomics which was basically trickle down didn't work, and only created more income disparity. That's why no one even mentioned Abenomics from around the middle of his long term in office, not even Abe himself. Kishida is not going to succeed in getting people to spend because the people have seen how inept the government was this past year during the pandemic. Many people had to dip into or completely deplete their savings while SMB/SME went bankrupt because of the lack of leadership during a crisis. Good luck with climate change, a stable source of renewable energy and your aging population.

10 ( +11 / -1 )

How about we all give the man a chance before we tear him down. As yet we have no idea if he is good or bad.

-12 ( +0 / -12 )

 But while the economic model boosted large companies and people on high incomes, benefits have yet to trickle down.

Well, after a decade of Abenomics and no trickle down effect we shouldn,t hold our breath.

The new prime minister has vowed to create a "new Japanese-style capitalism" to narrow income disparities through the redistribution of wealth.The new prime minister has said he will consider more generous tax incentives to encourage companies to raise wages for the middle class.

Or instead of more " generous incentives to encourage companies" how about this radical idea - give a tax cut to the long suffering average Taro? Too revolutionary for LDP ? Guess as long as the public keeps re-electing the same party perpetually Jiminto will not change.

3 ( +5 / -2 )

Japan's new Prime Minister Fumio Kishida is expected to stick to the "Abenomics" economic policy line in principle but with an additional focus on boosting middle class incomes to put the pandemic-stricken domestic economy back on a steady growth path.

somebody needs to tell him that QE (in English) or Abenomics (in Nihongo) will always decimate the middle class. You cannot reconcile the 2.

Get rid of the Haken sha-in system, punish black-kigyo accordingly and have them follow labor laws. Then he talk about boosting the middle class.

I concur!

6 ( +8 / -2 )

Good, because I’m middle class

-5 ( +1 / -6 )

Shouldn’t he be extra sensitive to the 40% living in poverty first and then move on to the middle class?

2 ( +7 / -5 )

AlongfortherideToday  08:29 am JST

As yet we have no idea if he is good or bad.

He's a senior member of the LDP so I expect a few nice-sounding platitudes and no meaningful action whatsoever. If we're lucky the Cabinet will get together, collectively agree that "it's difficult" and resolve to consider the issues seriously before taking their afternoon naps.

7 ( +8 / -1 )

That’s cheap and easy, because there is not so much more left of a remaining middle class, although of course almost everyone here thinks he still belongs to, for just keeping a bit self confidence.

4 ( +6 / -2 )

The ruthless economic exploitation of the many by the few for the express purpose of accumulating capital for the benefit of the ruling elite has always been the traditional MO of the Japanese polity. The tax burden borne by the majority under Kishidanomics will simply be a continuation of Abenomics by another name like "yamakujira" (mountain whale, ie. "fish") the substitute name given to "buta" (pork forbidden to Buddhists), or in our own day, the Japanese "Self-Defense Forces" for the Japanese "Army". Japanese workers will continue to receive their pittance for long hours at the grindstone. This rigid tried and tired formula of underpay for overwork will produce nothing new and anyone who expects differently ought to check with Einstein.

7 ( +8 / -1 )

8 years and they couldn't pull it off. Suga had lowest ratings of Japanese premier only 4 days ago. I suspect voters are going to vote anything but LDP.

0 ( +4 / -4 )

Higher green taxes won’t help families and those on low incomes, neither will making salarymen wealthier. Prioritize families and low earners to energize the economy, not the wealthy..

3 ( +5 / -2 )

Kishida pledged during the party leadership election campaign to maintain the "three pillars of aggressive monetary easing, flexible fiscal spending and a growth strategy," in an apparent nod to Abenomics.

We've had 9 years of Abenomics and what has it given the average Taro? Higher taxes and stagnant wages.

The new prime minister has vowed to create a "new Japanese-style capitalism"

Doubling down on Abenomics while redistributing wealth isn't possible.

7 ( +8 / -1 )

The relentless march continues to greater worker poverty.

5 ( +6 / -1 )

More flashbacks to Abe’s campaign promises. It didn’t happen during his years at the top job so there is no reason to believe Kishida will make it happen. 60% of the workforce are still on short term or part time contracts with low salaries and no job security. There is the middle class. I’d be very interested to see how he intends to turn this around. He’s just speaking out of his bottom to big note himself.

3 ( +5 / -2 )

Tax reform is needed, but at the same time, the rate of increase of foreign workers will need to be controlled. It is unfortunate that foreigners are being exploited as labor for simple tasks.

-3 ( +0 / -3 )

Nothing changes as long as Taro Aso, Toshihiro Nikai and Heizo Takenaka are around.

7 ( +8 / -1 )

"There will be no (wealth) distribution without growth. But it is also true that there will be no new growth without redistribution,"

This man is soooo smart! Were did he come up with this explanation? "Copy-catted" or just another catch phrase? I don't expect any salary increase for me (and probably not for many others). He will stick to the old way ..... give it to those who already got it (made) and take it from those who can't really afford it.

5 ( +6 / -1 )

Even the Communist Party now looks appealing in contrast. Sales tax to ZERO!

6 ( +8 / -2 )

The main income gap in japan is between those on salaryman 'permanent' contracts and those on 'part-time' / freelance conditions.

The tax, health insurance, pension and almost every other government system amplifies this disparity and gives perks to those who don't need them, while penalizing those who do.

Increasing the wealth of middle-class salarymen is merely going to exacerbate income disparity.

It's almost as if he doesn't know what he's talking about....

0 ( +1 / -1 )

I've noticed trickle down! It comes down from on high and is warm and yellow. I expect they will dish out more of the same. Here for 25 years and have never seen anything except wage CUTS.

Love how the working class, aka them what don't consume enough to be visible, are absent from the table. Imagine my surprise.

Also funny how the stock market's response to him is disappointment.

Wake me up when it's all over.

4 ( +5 / -1 )

nothing will change until the LDP is voted out of office

2 ( +2 / -0 )

I see some misconceptions about the relationship between full-time employees and freelancers or part-time workers. The treatment of freelance and part-time employees is that as corporate performance improves and the demand for wages and employment of full-time employees increases, the number of orders placed with freelancers and the number of part-time employees increases. Then, in order to secure the number of freelancers and part-timers to whom orders are placed, their wages will rise.

If the government forcibly raises the minimum wage, companies will reduce the number of orders to freelancers or hire fewer part-time workers.

That's why I'm just saying the very obvious thing of supporting companies and getting economic activity going again. It's just an extension of what has been done by the Abe administration so far. Basically, I don't think the direction is wrong.

-4 ( +0 / -4 )

how about lowering taxes, stop raising prices and letting people leave work before 8pm? that might actually make more babies too

4 ( +4 / -0 )

The US multinational corporations: HAHAHAHAHA!! No, and Japan gives us unrestricted access to your economy as well as tax breaks. Or we will force Plaza Accord 2.0 on you again!

Keidanren: Aye, aye boss!!

Japanese government: Hmmm.....Okay, let's undergo a very long bureaucratic discussion on this one. Don't worry, I will always prioritize the foreign robber barons who buy worthless Japanese stocks.

-2 ( +0 / -2 )

kenshin_uToday  03:02 pm JST

I see some misconceptions about the relationship between full-time employees and freelancers or part-time workers. The treatment of freelance and part-time employees is that as corporate performance improves and the demand for wages and employment of full-time employees increases, the number of orders placed with freelancers and the number of part-time employees increases. Then, in order to secure the number of freelancers and part-timers to whom orders are placed, their wages will rise.

It sounds great in theory. Is that what really happens? I got the idea that instead of hiring more employees and raising wages Japanese companies were just hoarding the cash.

That's why I'm just saying the very obvious thing of supporting companies and getting economic activity going again. It's just an extension of what has been done by the Abe administration so far.

What was done by the Abe administration? After eight years all I can remember is money scandals.

Basically, I don't think the direction is wrong.

Pity the government doesn't actually seem to be moving in that direction.

0 ( +1 / -1 )

I heard a ¥11 raise coming. All will be well after that.

1 ( +2 / -1 )

25% wage increase across the board. More employees less PT contracts. Less gig workers. 4 weeks annual vacation time. Retirement at 55. Then I know they are being serious.

1 ( +2 / -1 )

Please educate me, is there any middle classes left in Japan ???. IF there is, what is the income level ???.

0 ( +1 / -1 )

Abenomics 2 will just make the cost of living increase-prices are already going up due to covid. Companies refuse to increase wages for Dispatch staff and many entry level workers, your money will be worth less. Abenomics didn’t work, printing money only makes the cost of living higher, as well as increasing national debt..

-1 ( +0 / -1 )

Just helping egotistical middle class, nothing new here.

-1 ( +0 / -1 )

zichiOct. 5  05:20 pm JST

Retirement at 55. 

I'm not sure if the public finances could withstand losing the income tax revenue and paying out pensions to every retiree for an extra five or ten years.

-1 ( +0 / -1 )

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