For wages to rise, demand needs to rise, it's that simple. The problem is that while there are certain areas of growth in Japan, like e-commerce, the overall pie is not growing.

Wages would rise if labor unions had more balls. Also, if Japanese employers adopted large-scale layoffs, as the current policy at companies has been across-the-board wage reductions to cut costs to avoid layoffs.

However, Japanese society has made its choices in this regard, and is living with the consequences.

Unemployment is really low actually, which puts pressure on wages. When we hired for a position at our company it took us 3+ months to find someone qualified, which was a surprise to us.

the overall pie is not growing.

This is newsworthy? The pie hasn't grown in any meaningful way in over two decades. Companies are just managing share there. For the pie to grow, there would need to be a mass re-structuring and a huge investment in entrepeneurship. And neither of those will happen, at least in my lifetime.

The market dictates wages, as it always has. Japan has been in a deflationary period with almost no economic growth for the past 5 years. The means to raise wages does not exist. If labor unions in Japan had balls, nothing would be made in Japan. As it is, the majority of Japanese goods are now made in Taiwan, Thailand, China, and many other countries.

once that 2% inflation really begins to show.. people will start to feel it, especially if wages don't match it!!

Nonsense. We have all seen Japanese companies ask for "sacrifices" from their workers during hard periods, like reducing their working hours and pay, but during the good times these "sacrifices" aren't repaid. Pair this with the rocketing salaries of CEOs and top management in Japan and where the money is going is no mystery.

Why are there so many occasions when one sees utter absurdities like this one, printed in a japanese newspapaer?

First of all, the rest of the world right now is grappling with an economic enormous crisis, because starting with ignorant politicians like Reagan and Thatcher, this so-calles "supplyside economics" and its consultant has ruined half the planet.

And second of cousre,. this so-called expert is a so-called consultant whose wisdom in advising companies on how to raise their profits has never gone beyond: Increase money income, lower costs. In other words Fire employees, and raise prices! Any 14 year old can tell you that.

You want consumer to buy more, you have to them pay higher income, its that simple

If labor unions in Japan had balls, nothing would be made in Japan.

If labor unions in Japan had balls, record amounts of liquidity wouldn't be locked up in the corporate sector and also hogged by the financial institutions, who are sitting on it and refusing to lend it.

Instead, more of all that cash would be paid in wages, which would then be spent in the economy, boosting domestic demand, thereby leading to...yes,.... economic growth.