Japan at major turning point in wage-price cycle: BOJ member

I guess we'll have to wait until next year to see any yen strength. It's hinges on Japan's private-sector employers. If they continue to be stingy on wages, we'll all be stuck with a cheap yen forever.

This year's annual shunto negotiations between labor unions and management resulted in an average 3.58 percent pay hike.

Only 16.5% of employees in Japan belong to labor unions, so consistently using this shunto data as evidence of sustainable nominal wage growth is deceitful.

https://www.nippon.com/en/japan-data/h01571/

Japan is nearing a "major turning point" in setting in motion a virtuous cycle of price and wage hikes,

That Abenomics promise is finally coming is a scam of the grandest order..

The BOJ is a economic market planning org like the old communist planned economies, except in the service of corporations exploiting workers.

Bank of Japan board member Asahi Noguchi said, though he added that monetary easing is still needed to achieve desirable inflation.

And monetary easing basic income for rentier capital oligarchs is one of the pillars of the BOJ planned economy.

This is pure folly. As Asiamna7 stated, only a small percentage of workers received this 3.8% increase. Many saw little or no change to their salaries as companies still cry poor, and maybe honestly so, since the mega corporations will not share the lions share of profits they are reaping. With prices rising at a much higher rate than the coveted 2% it is just getting harder and harder for families.

The BOJ is a economic market planning org like the old communist planned economies, except in the service of corporations exploiting workers.

And monetary easing basic income for rentier capital oligarchs is one of the pillars of the BOJ planned economy.

What’s happening is the financing of profligate spending by the central planners of the government, not the decentralized decision making of private enterprises.

The corporations and “rentier oligarchs” (we are talking about Japan, right?) have no sway over the central planners of the government and it’s abetting lackey, the Bank of Japan.

I guess we'll have to wait until next year to see any yen strength.

The yen is about where it is supposed to be. While the world in general is working much smarter,

the Japanese mindset is still in the 80s thinking the harder you work the better your life will be.

the mega corporations will not share the lions share of profits they are reaping

Profitable Japanese corporations are certainly paying dividends to their shareholders, after paying corporate tax, and shareholders who receive those dividends are paying 20% tax on those dividends (except where the shares are owned in a tax protected account such as a NISA).

Are you complaining that the corporations pay too much in dividends to their shareholders, and you would prefer them to pay less to their owners and more to the people who e entered into employment agreements with them? (if so, what would be the consequences of that?)

With prices rising at a much higher rate than the coveted 2% it is just getting harder and harder for families.

Amen to that.

It was much better when Japan had price stability, not deliberate inflation.

The BoJ has two fundamental missions — to maintain price stability and high employment. It’s failed at the former and employment shouldn’t mean starvation wages.

And yet so many European and Scandinavian countries can have better lifestyles, higher wages, more benefits, free healthcare, education, etc.

So unions are the base? None of my friends have received any more this year than last. So they are hurting. Foreign staff in all industries should form a union.

This year's annual shunto negotiations between labor unions and management resulted in an average 3.58 percent pay hike.

This is about 16-17% of the work force.

So the other 83-84% of the real work force, got nothing in raises...for many many years.

Yen should ¥200 according to what I wrote above.

BOJ is either out of touch with reality or just plain lying. Most Japanese have falling real incomes, and wishful thinking isn't going to change that.

Majority of Japanese companies/business are heavily reliant on the domestic market which is shrinking and facing ever greater competition globally. Salaries are the largest fixed costs so when you combine it with Japan's low labor productivity, doubt management is in a rush.

A turning point?

All I see are rising prices and stagnant salaries-the same for several years now