An immediate issue to consider is how to respond to power demand. We need to think about the economic competitiveness of our country because there is danger of hollowing out in manufacturing.

Prime Minister Shinzo Abe, saying that nuclear reactors may need to resume operations to ensure a stable power supply to ensure businesses don’t move offshore. (Bloomberg)

  • 0

    Frungy

    Oh for goodness sakes Abe! Japan's manufacturing sector isn't "hollowing out", it's following international trends of outsourcing low-skill manufacturing jobs to less developed questions while concentrating expertise (R&D, engineering, etc) and administration in Japan at the home office. This isn't a problem, it's a natural and logical business model. Why pay 100 times the rent for factory space, 100 times the salaries for Japanese workers, huge import costs for raw materials, etc... when you can get the same space cheaper, cheaper workers, and build the factory right next to the raw materials. At the end of the day the profits all come home to Japan anyway, so who CARES where the thing is actually built.

    ... clearly Abe has no grasp of global economics. Japanese people are generally well educated and they do not WANT to spend their careers putting tyres on cars or inserting bolt 33 onto nut 33. By decentralising low skilled jobs the companies increase profits and allow more employment of more skilled individuals in Japan. That someone as senior as Abe hasn't had this VERY simple pattern explained to him just shows how unsuitable he is to be in a senior position of the world's 3rd biggest economy.

    ... need one also mention that decentralising more of Japan's polluting, energy-hungry manufacturing sector would also reduce pollution and power demand?

  • 0

    mikihouse

    if you got no job, you have no purchasing power.

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