politics

Aso says wage hikes key to 'Abenomics' success

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And how many times have you said this, Abe? and how many times has it happened? Stop ASKING the companies to do it, and start MAKING good on your vows! The companies don't want to do it? Fine, take back all the cuts you've given them so far. They've taken all sorts of stimulus and benefits intended to revive the economy and instead of implementing your third arrow, which you seem to leave up to them while making everything else your priority, they've taken the windfall profits and attempted to turn them into MORE profits directly for them and them alone. Since money talks, take theirs away and make the condition for them to get the benefits upon their increase of wages. Not by 3000 yen a year, not in some one-lump bonus of 100,000 or less, but a complete hike in wages across the board which cannot be lowered later. Don't give them what they want and then kindly ask them to do their part because they do not, and will not.

4 ( +14 / -10 )

It appears that Aso is finding out first-hand exactly why trickle-down economics don't work - the people who pay out the money want to keep as much as they can. It's why trickle-down economics don't work in practice, even though they look good on paper.

And how many times have you said this, Abe?

It wasn't Abe saying it this time.

2 ( +6 / -4 )

Another fudge! If companies increase salaries they will also increase the prices of their products. Ding dong! FAIL!!!!

You can stick your third arrow where the sun doesn't shine cos you are just giving the whole country a huge 'kancho'!

-4 ( +6 / -10 )

"[Japanese] companies to boost wages" Easily the funniest thing anyone has said in the year 2014! Just yesterday JapanToday posted an article on the continuing rise of "black companies" in Japan. If ANYTHING, less and less full time positions are being handed out, less benefits, more hours, more forced unpaid over time.

9 ( +11 / -2 )

Before the the complainers come in here, the US is having the same problem. QE has helped corporations,a nd esp their profits. Thing is, they don't want to share their success with anyone else. I say, tax companies that squeeze domestic supplies, and don't give wage hikes.

2 ( +4 / -2 )

Companies only know how to increase the prices and profit.

6 ( +9 / -3 )

Aso is my hero! This guy simply rocks!

-11 ( +2 / -13 )

In other words, since Aso must be aware that wage hikes will not happen, Aso admits Abenomics is a failure.

5 ( +8 / -3 )

Strangerland: "It wasn't Abe saying it this time."

You say that as though they are not one and the same.

-1 ( +3 / -4 )

Gee thanks Abe, I'll be sure to pass that on to H.Q in the states, Im sure they will happily raise my wages to accommodate your tax increase, and the sagging yen..... :-(

1 ( +1 / -0 )

StrangerlandDec. 24, 2014 - 03:22PM JST

It appears that Aso is finding out first-hand exactly why trickle-down economics don't work - the people who pay out the money want to keep as much as they can. It's why trickle-down economics don't work in practice, even though they look good on paper.

Abenomics is Quantitative easing, not trickle down. TD is based off of tax breaks for the rich. Abenomics is QE and stim, mixed with a bit of structural reforms. TD is based on the theory that the rich, with less tax burdens, will invest in the economy, and make jobs.

Quantitative easing, means easing the money supply, and it makes borrowing, easier, and cheaper. Which allows for more Capex, and hiring. Both theories have flaws, but QE, despite TD has seemed to have some success in driving the US economy into decent growth. Esp when compared with Europe as a whole.

-1 ( +2 / -3 )

The third-arrow of Abenomics won't succeed unless companies show their willingness to cooperate

After living in Japan for over a decade, the word 'cooperate' now sends chills down my spine.

5 ( +9 / -4 )

Can you imagine a western politician going to the private sector and begging them to change their pay rates in order to prevent his economic policy looking silly? He'd be laughed out of office.

5 ( +10 / -5 )

Voluntary wage increases are never going to happen. The only way companies could be induced to increasing wages is labour reform for more full time employment and easier firing by companies. Although Japan's employment rate is low, low full time employment is keeping wages down.

6 ( +6 / -0 )

Most salary man i know struggle to make ends meet. So i guess a realistic wage hike must be very high to make sense. And you guys realize that a higher wage means higher taxes as well?

Aso san should start by voluntary cut his own salary, so taxes can be lowered... Hahaha ! Btw nice fedora and kanji skills

3 ( +4 / -1 )

I need Aso to make a personal visit to my company's president's office and persuade him to raise our salaries.

3 ( +3 / -0 )

Forcing people to spend what they don't need to spend - what an unorigional and short sighted way to run a country and an economy. Mr Abe - eve heard of phrase "quality over quantity"? I'm quessing - no.

1 ( +2 / -1 )

As an employer of over 150 employees and an importer of goods from abroad, I'm one of the 83% in Japan's economy that is not benefiting from Abenomics or goKuro(da)-sama Frankenmonetary policies. Abe's only talking to the 17% or importers that are reporting record profits through weak-yen induced FOREX repatriation. Basically, he's punishing domestic and import companies that achieved real profits during the strong yen years by wiping out our margins and giving it to his crony exporters instead of forcing them to earn it.

Even if that 17% were to increase wages, over 80% of the working populations of Japan won't benefit from it. It's just plain bad arithmetic. Those guys still think Japan is an export economy; something that changed decades ago...

4 ( +8 / -4 )

Finding it tough on a meagre salary then look into areas of growth for opportunities, tourism and aged care are two that immediately come to mind.

Lots of room for a smart person to capitalise here, or just sit on your hands collecting your meagre wage and carry on whinging and moaning.

The world is all about creating your own future not waiting round for it to fall into your lap. Get up off your ass and go get it.

-4 ( +1 / -5 )

Raise taxes, legislate for higher wages and let the super miracle happy times roll on!

0 ( +0 / -0 )

better if we raise wages of the lowest income workers and those who's getting the high wages can just stay the same. The poor people are the ones suffering more

4 ( +4 / -0 )

I'm up for that. Right now we simply can't survive on our income.

1 ( +2 / -1 )

Hello Mr. Aso finance minister of Japan, please remember that if Abenomics become success then salary will be increased automatically. On the other hand if Abenomics fails then salary will remain in same position or decrease. This is the nature of economics. Please don`t push to the company to increase the salary. This is meaning less.

-3 ( +0 / -3 )

measly salary means early 40's salary man with 1or2 kids, mortage and stay at home mom. She most likely only worked a few years after uni and is out of work for ten years or so. He gets 4m or so a year. Not a lot opportunity and chance to improve his situation.

2 ( +2 / -0 )

I didn't like my salary. Strangely, complaining about it never seemed to make it go up. Instead, I found a way to make more money for myself... It sucked because it meant a lot more work for me but what sucks even more is not being able to provide for my family. Obviously, there is a saturation point where I simply can't find more hours in the day but the only one who I can rely on to make my situation better is myself.

5 ( +6 / -1 )

The problem is the hurdle you have to pass to even get to the 4m per year. At least you will need university, which most likely your parents helped you with financially. My question is will the average salarymen be able to provide the same level of support for their children like the parents of today's 30/40yearolds are? Will they have the spare 500man to pay a adult child`s mortage fees and then sponsor the mortage? Things like this makes me worry about the sustainability

1 ( +2 / -1 )

Good luck getting a raise from those Black Companies.

2 ( +2 / -0 )

must be sound better if they make and pass laws or bills for raising the minimum wage,,LDP could easily pass it through the lower house or the Diet since they hold the majority. But, looks like LDP don't have the gut to do so, even with the majority in place, looks like they rather stand for big companies than for average working families. Asking companies, they will only do the very opposite..change or pass new laws first in favour of working people, thats why u were elected in the first place.

1 ( +1 / -0 )

Ahahahaha yeah - right! Won't hold my breath. We seem to ride this carousel of lies year after year...

1 ( +1 / -0 )

@Haroon ur Rashid

You didn't say "meaningless" (having zero meaning), you said "meaning less". So I ask meaning less than what? Less than the policies of the past?

0 ( +0 / -0 )

"Can you imagine a western politician going to the private sector and begging them to change their pay rates..."

Well, they should do exactly that. Corporate welfare is at an all-time high. If the govts pulled out all their subsidies and procurement contracts, half the corporations in the capitalist West would immediately go belly up. Obviously, all the defense contractors, like Boeing, would be toast.

With the labor unions weakened, it's time for us 99% who fund these greedy billionaires to use a bit of leverage!

2 ( +3 / -1 )

I guess everybody who has worked at a bigger company in Japan knows that there are so many redundant employees, managers, processes, products and whole business units. This is a soviet style system where a place gets inhereted. Every advancement in hierarchy beside the already established structure is only possible by adding another department and hire a bunch of people, so you can get manager... Sad but true. There is really nothing Abe or Aso san can do to change the fundamental structure of this kafakesque system.

-1 ( +1 / -2 )

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