politics

OECD urges Japan to promote labor reforms; calls wage growth 'muted'

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Wish we could see Mr. Abe's face!!

4 ( +4 / -0 )

It's not wages that need reforming, but the economy. Wages are the symptom of Japan's economic problems, not the solution.

Japan Inc still relies on domestic consumption for more than half it' sales, and with the Japanese population falling quickly, so are sales. When sales are falling, your company is not going to pay higher wages. And let's not forget that Japanese executives are not as highly paid as their American and European counterparts.

In an environment with ever lower sales, revenue, and profits, wages are not going to go up. So long as the economy remains deflationary due to lack of demand (Abe's printing of yen is not "real" inflation), wages cannot increase.

And the economy will remain deflationary so long as cost of living is unnaturally high. And costs will remain unnaturally high so long as Japanese companies remain uncompetive, and continue to rely on a cheap yen, favorable trading deals, and price fixing to make their profits.

6 ( +8 / -2 )

Where to even start?

Japan needs a 40hr work week with compulsory overtime pay for anything beyond 5hrs per week. Japan needs mandated wage equality so women will equally carry the economy. Japan needs greater efficiency to let working people have a life outside of work. Tax and benefit reform and improved immigration to fill declining worker levels. And let inefficient outdated companies fail and the market replace them as it naturally would. And finally stop age and sexism in employment.

Benefits? People with less time in office will spend more money generating more jobs, tax revenue and economic activity. Equal pay will mean women have more resources to contribute to the above as well as support their families better. There will be reductions in national healthcare costs if people are not overworked and suffering from stress related illness.

Older workers would be able to retool and get jobs to remain productive instead of being marginalized.

Efficiency will make Japan more competitive. If they add regulatory changes it may help make Japan a greater hub and bring back jobs from other Asian nations.

But lets face it. The LDP have no interest in an of this. They are the status quo. They want and love the status quo and lack the creativity and vision to prepare Japan for the future. Sadly no other party here is any better.

4 ( +4 / -0 )

“There is room (for further hikes) in the case of Japan,” Gurria said, adding that the consumption tax could be raised above 15%. He floated the idea of gradually raising the sales tax, by 1% every year for instance, so the economy can deal with the impact

Yeah, but raising the comsumption tax should be accompanied by cuts in income and other types of taxes aswas doen in other countries. But J-government and media never mention that part of the equation when they push their propaganda crap about other countries having higher sales tax rates than Japan . In Nippon its always about raising taxes without compensating the average Taro. Making a comprehensive tax system overhaul and cutting the bucketloads of wateful spending is needed but the dinosaurs in charge of J- govt will never allow that.

0 ( +2 / -2 )

You can't keep offsetting taxes with cuts elsewhere if there's ever a notion to pay off debt loads. Cut off international public money for businesses too and you'd have some means of improvement. Spending like the future doesn't matter will only make it true

0 ( +0 / -0 )

Japan needs a 40hr work week with compulsory overtime pay for anything beyond 5hrs per week. Japan needs mandated wage equality so women will equally carry the economy. Japan needs greater efficiency to let working people have a life outside of work. Tax and benefit reform and improved immigration to fill declining worker levels. And let inefficient outdated companies fail and the market replace them as it naturally would. And finally stop age and sexism in employment.

Benefits? People with less time in office will spend more money generating more jobs, tax revenue and economic activity. Equal pay will mean women have more resources to contribute to the above as well as support their families better. There will be reductions in national healthcare costs if people are not overworked and suffering from stress related illness.

Older workers would be able to retool and get jobs to remain productive instead of being marginalized.

Efficiency will make Japan more competitive. If they add regulatory changes it may help make Japan a greater hub and bring back jobs from other Asian nations.

Yes! two thumbs up.

0 ( +0 / -0 )

I think this is the guy who cut Mexico's government spending 5 or 6 times to help sort out the economy... Think Abe will take that idea on board?

0 ( +1 / -1 )

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