We’ll probably see a pretty big divergence in spending between the rich and the poor. In that sense, (new Prime Minister Fumio) Kishida’s policy goal of narrowing the gap could play a vital role for a smooth recovery of spending.

How true. The economy needs a strong boost in consumer demand. Apparently domestic travel is going gangbusters.

But, we could have read just a little bit more. From the Bloomberg article:

A longer-term impediment to a consumer revival, though, is Japan’s track record of weak wage growth, which has made people wary.

“Consumer spending will rise in the short-term, which is good for the economy, but I don’t expect that to continue,” said economist Masamichi Adachi at UBS Securities. “Cautious Japanese consumers won’t keep spending generously.”

https://www.bloomberg.com/news/articles/2021-10-01/ending-state-of-emergency-raises-economic-stakes-for-japan

We’ll probably see a pretty big divergence in spending between the rich and the poor. In that sense, (new Prime Minister Fumio) Kishida’s policy goal of narrowing the gap could play a vital role for a smooth recovery of spending.

Yeah. good luck with that

Those few who could save a bit surely won’t ignite the boosters of economy as they already have everything. And the masses couldn’t save so much, in contrary.

Divergence on spending according to what one has is different than divergent on spending in sum amounts.

The poor will spend everything available, and the rich, well, just like finding ten yen in a change deposit on the bottom of a coke drink machine.

In case of Japan, there will be no change in anything apart from the rich becoming richer and the average/ poor becoming poorer as cost of living becomes higher! So far, it’s been all bark and no bite as the old / new administration ( LDP ) doesn’t have any concrete way of supporting the average/poor people to overcome the rising cost of living!

There is a lot of talk about improving the finances of the middle class. However, you have to improve the finances of young people just starting to work. They are not making enough money to get married and have kids. They should get the priority before the population dwindles to nothing.

Another thing to take in account is that, in a situation that nobody could plan nor have control about, the government actually relied on 0% interest loan for the people in financial trouble. I think that can leave a strong impact in people which even without needing the loan were actually able to picture themselves being on the other side of the line. After the : you have to save 20 millions for retirement, it kept pointing in the direction : you need to save as much as you can when you can because when you can not you are on your own. And on top of that you can add the current system to get people out of governmental help (throwing them to family member, making them lost everything first to limit the chance they get out of the bottom of poverty, I suppose).