politics

Abe outlines reform strategy; pledges to raise incomes by 3%

43 Comments
By ELAINE KURTENBACH

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43 Comments
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Yeah, I'll believe this when I see it.

4 ( +6 / -2 )

Nail in the coffin. He already promised something along these lines and failed once. I guess an election must be coming up.

3 ( +5 / -2 )

Well he is gonna have to do something to put more money in peoples pockets because good old Abenomics is doing a grand job relieving us of it.

1 ( +2 / -1 )

Japan is not China..

deflation debt shrinking workforce shrinking population aging population aging infrastructure corrupt bureaucracy an apathetic and disenfranchised populous. .. the list goes on.

am i a pessimist? .. put simply that is the reality of this nation..

"He also promised to raise Japan’s per capita gross national income by more than 1.5 million yen in 10 years. It now is about $45,000 a year."

No one cares about income, Mr Abe.. what people care about is decent living standards, a decent pension, a decent health care, and a decent future for their children..

promises are made to be broken, we need politicians and bureaucrats who will act before they open their mouths..

9 ( +10 / -1 )

So (as we all suspected) there really is no 3rd arrow, and the first two were well off target.

1 ( +3 / -2 )

and next week he will promise us all pie for dessert.....liar liar pants on fire.....keeping this childish for the native audience..

1 ( +3 / -2 )

VerisimilitudeJun. 05, 2013 - 03:19PM JST

and a decent future for their children..

I think the frightening thing, is that I don't think they really care what Japan they leave to their children. The Dankai generation only care about themselves.

5 ( +10 / -5 )

So the yen is worth 20% less, but we will get 3% more income. But wait, aren't they gonna raise income tax to 15%?

8 ( +10 / -2 )

Sorry, I mean consumption tax.

6 ( +6 / -0 )

DogJUN. 05, 2013 - 03:32PM JST

If that is the case, then the seeds that were sown during the meiji restoration, and bore fruit in the post-war era, have failed to sow the seeds of the coming generations.

i wonder if we Japanese, ever think, that whenever we say shoganai, we desecrate the memories of those who died, those who shed both tears and blood to create this nation.

just an opinion.. something I am sure, the political establishment will ignore.. Mr Abe may indeed initiate structural reform, but i doubt anything will change..

3 ( +4 / -1 )

The strategies Abe sketched out in a speech form the third and most important arrow in his “Abenomics” platform, .

seems this third most important arrow has badly hit Nikkei 225 that lost 500+ also major asian share markets today.

0 ( +2 / -2 )

Wonder what Abe will be saying after next month's House of Councillors election? Right now he is spewing out election talk, promising this, promising that. All of these promises bode well for a huge success for Abe and his LDP in the forthcoming election. But then what? Will he continue to try to talk up the economy, will everything once again go kaput, or, hopefully (for the sake of my meager income), if he is lucky, will Japan begin prospering again? These are nail-biting times ...

3 ( +3 / -0 )

With all due respect Mr. Nakagawa, an expert on the TPP at Tokyo University. How can anyone be an expert on the TPP when it's so damn secret!

1 ( +3 / -2 )

sengoku38. They were hoping that people would forget about the coming increases in sales tax. 3% up!? The minimum wage will increase when pigs fly. Abe is full of BS.

3 ( +4 / -1 )

Why do they keep saying things like "ailing Japanese economy". It is not ailing! We have it great in Japan. And so does the US and Europe and China (at least along the coast).

0 ( +3 / -3 )

stock market has increased by 70% since PM Abe came to power, that itself shows that stock market should not be taken as an indication of country`s economy. Life and purchasing power has not changed an iota. Stock market is enjoying this irrational exuberance and soon these fancy investment bankers will book their profits and walk away as if nothing happened.

3 ( +4 / -1 )

I just don't understand, if Mr. Abe wants to encourage domestic spending to improve the GDP of the countrty why not increase the salary to push the people spend more.

1 ( +1 / -0 )

Thanks Mr. Abe! A worker at our bank just informed us that thanks to Mr. Abe, we will now have to pay 20% tax on our mutual fund profits. Also when we decide to sell these funds, the tax has also been increased to 20%! Not sure how this new system called NISA is supposed to get people to invest in the stock market, because it seems very punitive if you asked me. The banker told us if we want to avoid the tax, sell now! With the way the stock market is going, we could be headed for a big crash soon!

5 ( +7 / -2 )

Japan is a capitalist country. Therefore its not the Government but companies that determine whether or not salaries and bonuses go up, the core component of the well-being of Japan's future . Abe and the incumbent Government are trying to provide fiscal, monetary and structural reform (remove business impediments) to help Japanese and foreign businesses to invest more and improve performance which won't happen overnight. They are providing the fertilizer for the ferns to grow. Abe's speech today was lackluster at best.

-1 ( +0 / -1 )

Well if he achieves annual growth of 3% then raising th income should follow by default. (1+0.03)^10=1.34 45,000 * 1.34 = 60,300.

I should be noted that with inflation targeted at 2%, he is only talking about real growth of 1%, (3%-2%).

1 ( +2 / -1 )

Lot's of criticism here, no alternatives offered. Some don't even look as though they have read the article properly.

Of course he has to aim to raise salaries - you can't have inflation in an economy with stagnant salaries, basic common sense. Putting more women in the workforce? It's one of the primary recommendations directed at Japan by all kinds of economists. The very people who have been calling for this all over the JT boards suddenly have nothing to say?

Raising the Consumption tax? Absolutely. Japan has to do this - it's still waaaaay under the OECD average of 15%. Ya gotta pay yer debts, people.

Loosening the purse strings of big companies and households that leave it in banks earning no interest and doing nothing for the economy? Absolutely he has to try to achieve this.

I don't particularly like Abe, or his politics, but he is having a real go at reforming the Japanese economy where previous governments have sat on their hands, and I like the way he is going about it.

People whinge, it's human nature, but they'll also be the first to lap up life in a resurgent Japanese economy too.

-2 ( +4 / -6 )

"the third and most important plank" HaHa! Seriously none of you have put forward anything or anything better. Would you prefer the European austerity? I don't think so. Go back to your lounge chairs, TV pocket mony, YouTube and potatoes, while we tweak macro economics.

-2 ( +1 / -3 )

So let me get this straight, prices have increased for pretty much everything but oh, at least 10% and he thinks we'll give him a cookie for a 3% increase in wages that we all know won't happen? Yes, now THAT is Abenomics.

0 ( +4 / -4 )

Abe keeps shoveling it and the people keep taking it, and it's getting deeper and deeper and deeper.

3 ( +3 / -0 )

Abe helping to raise the big company to to more bigger, but a small family is getting smaller near to end the life .He move for the sake of the rich people

4 ( +5 / -1 )

One can be divided over whether Abenomics is actually working, though I have yet to see evidence in the real economy. But 'pledging to raise incomes by 3%' seems to be taking it far beyond his capabilities. Is he going to go round and nicely ask CEOs in the country if they could please raise the salaries of all their workers by 3%? Seems strange to me that someone can promise something that he has absolutely no control over. No wonder the Nikkei nosedived after his speech. Seems nobody really bought his 'strategy'.

3 ( +3 / -0 )

Just watched the pundits on CNN (I know) anyway, they said he gave absolutely no details. They believe there are one.

-1 ( +0 / -1 )

Abenomics is science fiction. It is a lot of ideas but no basis in tangible, deliverable elements that can be realized today. This promise is just another chapter in an already reality stretching saga that puts us all as charters in a bad fantasy film.

2 ( +4 / -2 )

raising inflation by 2% but now raising incomes by 3%!?!?!

First off, Abe can't raise income, that is left to the private corporations if they decide to. The best the government can do is cut income taxes by 3% (which can be seen as income raise) but the rational person would see that at some point in the future, taxes would have to rise so he would be wise not spending that 3% savings.

secondly, raising incomes by more than inflation.. wouldn't it create even higher inflation? if everyone can buy more goods, it should make them scarcer thus raising ts price by more than this 2% target

Interest rates being so low in this country, there is no incentive to save anything

2 ( +2 / -0 )

Abe neglected to mention the fourth arrow, to his head. As every other pol, he promises that which he can not deliver. IF there are 3% salary increases, they will be accompanied by 20% real price inflation. He should stick to coloring by numbers.

2 ( +2 / -0 )

Can someone explain me the Joe Tanakas's benefit of 30% wage increase in 10 years, while 25% will be eaten by imported inflation and 5% by income tax increase?

2 ( +2 / -0 )

I fear tummy troubles on the not too distant.. Will he last till the New Year??

0 ( +1 / -1 )

The Abe comedy road show rolls on.... The way things are going we're going to have Turkey style riots and protests here. The masses are easily led for a while, as you can see with some of the comments on here, but eventually even the gaman/shoganai docile Japanese will say enough is enough.

-1 ( +1 / -2 )

umbrella, hell will freeze over before the Js get off their arses and do anything

0 ( +1 / -1 )

Damned if he does, damned if he doesn't. I don't envy his job.

1 ( +1 / -0 )

Abe's saying, "Look here everyone! My "arrows" will save Japan!", hoping that enough people will be fooled until the July Upper House elections. Then when he has a majority in both houses he can drop the economic charade and pursue his only, true goal: the complete dismantling of the Japanese constitution. Edo-period redux, here we come.

-1 ( +1 / -2 )

In order for companies to invest, they have to find something to invest in and banks have to find loans worth making. Otherwise, the newly minted money just sits around, or ends up outside the country. Consumers will spend more if they think their future earnings prospects are getting better. That means Japan has to post sustainable growth. If you believe that Japan’s deflation is the result of a lack of demand, then supplying more cash won’t necessarily tackle deflation or restart growth. What Japan needs, then, is real reform alongside its monetary deluge, to break down the regulatory hurdles to growth. That means opening the domestic economy to more competition and fixing a distorted labor market.

0 ( +0 / -0 )

"....In order for companies to invest, they have to find something to invest in and banks have to find loans worth making. Otherwise, the newly minted money just sits around, or ends up outside the country. Consumers will spend more if they think their future earnings prospects are getting better. That means Japan has to post sustainable growth. If you believe that Japan’s deflation is the result of a lack of demand, then supplying more cash won’t necessarily tackle deflation or restart growth. What Japan needs, then, is real reform alongside its monetary deluge, to break down the regulatory hurdles to growth. That means opening the domestic economy to more competition and fixing a distorted labor market....."

A Yen for Cash: How the Bank of Japan Could Threaten the Global Economy

By Michael Schuman April 8, 2013

http://business.time.com/2013/04/08/a-yen-for-cash-how-the-bank-of-japan-could-threaten-the-global-economy/

3 ( +3 / -0 )

My oh my, how Nigelboy has changed his tone.

6 months ago, posters like myself and Globalwatcher were saying exactly what he has quoted, only to be vehemently criticized by a die hard supporter of Abenomics such as himself.

People, let's be honest, what Abe promised yesterday was a total joke and really showed that Abenomics is nothing more than the same old LDP public spending and currency manipulation to allow exports to prop up an ailing domestic economy. He didn't even promise to lower the corporate tax for heaven's sake.

And to give you a practical example of how that stifles the so called dynamism he urged yesterday... My company needs to builld a new more modern steel factory, to compete with Korea in the high grade steel market. It actual doesn't need to borrow the money and probably wouldn't be able to, if it wanted to. It owns large swathes of land in the Tokyo, Chiba and Kawasaki area, which are doing nothing. However to sell them would result in a 30% tax bill on any monies earned, so it just doesn't happen and the slow death of an industry follows it uninterrupted passage to oblivion.

As I've said all along, Abe is a joke and Abenomics is the eikaiwa of economics.

-1 ( +2 / -3 )

My oh my, how Nigelboy has changed his tone.

Read sfjp330 post above mine. I basically pointed out sfjp330 tendency to plagiarize someone else's work as their own.

6 months ago, posters like myself and Globalwatcher were saying exactly what he has quoted, only to be vehemently criticized by a die hard supporter of Abenomics such as himself.

You said a lot of things which showed your lack of knowledge of how to interpret the CPI data.

3 ( +4 / -1 )

Readers, please stop bickering.

0 ( +0 / -0 )

I'm tired of this 3 arrows nonsense. It's as if all he needs to do is pull back the string, take aim and voila! Never mind that the 'targets' are multi faceted polyhedrons, and never mind he doesn't have a clear shot at half the 'faces' or aspects of the targets. This hand waving explanation about a bow-and-arrow underscores the fact that these are aspirations rather than specific policies he's talking about.

0 ( +0 / -0 )

Abe is so full of the S. How any critically thinking capable person can swallow all his "promises" is waay beyond me. He is after some things (changing the constitution) and to reach that goal he tells all these docile, apathetic Japanese voters what they want to hear. They want to be lead by a strong leader and think he's the man. He is not. If people here had any knowledge of history outside of Japan, they would see the pattern. I seriously doubt they do... Japanese people of today could take action. I they wanted to.

0 ( +0 / -0 )

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