We're about to see the kind of wage increases never seen lately. I told the G20 I welcome such moves because they help ease the impact from the sales tax hike.

We haven't seen any sign of this in our family. Words only, no deeds.

Toyota gave .8% increase. Is that what Aso means by his pronouncement? Taxes went up by 3% and wages at Toyota .8%. Maybe by Abenomics logic that is a good deal for consumers?

BS!

What Minister Aso misses from his eagle's lair is that if only the seishain at the otegaisha experience increased incomes that will leave the majority (more than 50%) of Japan's working population out in the cold of consumer price inflation. With the average compensation of full time haken (and contract) status employees at less than 40% of their seishain coworkers this largest element of the working population will have no option except to further reduce their consumption of basic goods like food and clothing. **

never seen lately

Just that bit pretty much sums it all up.... Never seen lately or EVAR. lol Taro Aso Uber LOL

I don't foresee any raises in pay coming, as in Japan the consumption tax isn't limited to end consumers. Companies too will see part of their profits be siphoned away because of th additional tax, and this will do little to motivate them to pay their staff any higher.

There is more than a fair chance that the increase in tax will lead to further deflation, as the larger domestic companies are finding the cost of doing business at home too high, and the declining population eliminating their key source of growth. Companies that can will take whatever money they can and put it where it can grow, which is certainly not going to be Japan.

The key issue that is causing the decline of the population and the economy is the simple fact that living costs are too high in Japan. Consumers cannot consume things which they cannot afford to buy. Price-fixing, overregulation, heavy taxes, and inability to see which way the wind is blowing are all things which can be and should be addressed, but in no country on earth are the top 1% more firmly in control than in Japan, so in no country are such fundamental changes more difficult to make.

Cost of living used to be high in japan compared to other places, but now many places are paying more for food and other goods compared to what Japanese are paying, Japan has become relatively cheap in a lot of instances.

StormR said: "Japan has become relatively cheap in a lot of instances."

Not according to the U.S. Department of State Indexes of Living Costs Abroad, Quarters Allowances, and Hardship Differentials*January 2014 Report**. (based on data from before the April consumption tax increase).

The report shows that with just a few exceptions in special circumstance locations (for example ANGOLA: Luanda and NORWAY: Oslo) no other place in the world has higher living costs than Japan.

** http://aoprals.state.gov/content/Documents/Jan2014quar.doc

Yes, but Japan still has one of the lowest taxes in the world /sarcasm