Hideo Kumano, chief economist at Dai-ichi Life Research Institute Inc (Bloomberg)
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If inflation accelerates further under Abe’s policies, inequality will widen. The socially vulnerable and low-income classes will be worst affected and a cut in livelihood subsidies deals them a doubl
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jerseyboy
Too bad the average voter was not smart enough to figure this out, and just about two months ago gave Abe another four years in office, based on a bunch of empty campaign promises/platitudes. Tighten your seat belts folks, Japan is in for a bumpy ride.
Serrano
Inflation wouldn't be a problem if my company would raise my salary enough to offset it. But if my company raises our salaries, they have to charge more for their products, raising inflation. Wait a minute...
StormR
Quite a few companies are looking to raise wages http://mainichi.jp/english/english/newsselect/news/20150207p2a00m0na012000c.html
Some of you need to read other sites to get an idea of reality, this place cherry picks its news it reports.
mrkobayashi
The "average voter" in Japan is elderly, retired, and only looking out for themselves (pension, national health insurance, etc). Over 70% of the elderly vote for the LDP. Overall, only 30% of the population voted for the LDP, but it's hard to counter those votes because there are so many elderly.
TravelingSales
Inflation is good for borrowers (the government and, less intentionally, anyone with a mortgage) and bad for savers (the old, the less intelligent rich, and big corporations). Deflation is the opposite.
jerseyboy
mrkobayashi -- thank you, that was my exact point -- which of course has drawn two thumbs down so far. Since the "average voter" as you say, is not average at all, but an older person on a pension/fixed income, many of the day-to-day issues regarding the economy do not effect them at all. So long, as you say, their issues are protected.
shonanbb
If you are going to increase salaries to offset inflation, then why not just not have inflation?
TravelingSales
The point is to take from people who own government bonds or have bank deposits and give to the governments. The salary increases are just a means to an end.