The requested article has expired, and is no longer available. Any related articles, and user comments are shown below.
© (c) Copyright Thomson Reuters 2017.Abe asks business leaders to raise employees' wages
TOKYO©2024 GPlusMedia Inc.
The requested article has expired, and is no longer available. Any related articles, and user comments are shown below.
© (c) Copyright Thomson Reuters 2017.
37 Comments
Login to comment
Disillusioned
Does this loon live in a parallel universe? What high-level wage increases is he referring to? It's been well documented that, the corporations kept their tax cuts and did not pass them on as salary increases. Now, he's 'asking' them to do it again. Do what again? Ignore the directive to increase wages?
sf2k
There is no such thing. The only percentage where this statement is true is 0%
papigiulio
Which companies? And why say it only to those companies. Anyway, whatever he said, nothing will change unless it's mandatory.
smithinjapan
Good old Abe! Promising yet again to deliver on the economy, then simply asking companies to give wage increases with a pretty please and leaving it up to them. There should be no request. They should be given until April, then tax breaks revoked if they do not comply. And "as much as last year" is quite easy for the companies that gave absolutely nothing to their employees after accepting Abenomics rewards, and slightly less easy for those who gave another 4000 yen/year while increasing overtime (also illegal) by demanding employees start off working earlier in the day.
More complete failure from Abe -- and in less than a day.
rainyday
This is a bit contradictory. We need wage increases to keep ahead of price increases so we can get out of deflation (which, by definition, means that prices are falling rather than increasing).....
Zed Phillips
It never occurs to politicians to cut taxes. Big government is a pre millennium idea that failed time and time again. Hong Kong under British rule, prospered because of low taxation and small government but that would mean all the old talking heads and suits would be out of work and the gravy train of civil service jobs would be derailed.
Moonraker
From Wikipedia: "In politics and economics, a Potemkin village is any construction (literal or figurative) built solely to deceive others into thinking that a situation is better than it really is."
Wakarimasen
all fine and dandy but a reduction in the current ruinous tax and spend policies of the Govt. would be more beneficial.
fxgai
That's a fantasy world idea about how to fix Japan's broken economy.
First, deflation is good. We like it that we can buy iPhones for 50,000 yen these days, whereas the first mobile phones cost 10 times as much. This deflation of prices is a result of higher productivity and advancement. Prices going up is the opposite of what we want.
When prices go down, it does result in the uncompetitive players go out of business (or should, in a normal economy, which Japan is not). Those businesses then free up resources, which can then supply the demands of newer businesses that spring up in their place (or would, if Japan were an easier place to start up a new business).
But Japan embraces the (non-viable) status quo, rather than the natural progression of things. Rather than embrace the collapse of out-dated businesses Japan seeks to sustain them, rather than facing up to the reality that times change, and the economy should with it.
Sustainable, strong economic growth will come not because of a money merry-go-round, but when Japan embraces the notion of progress, and changing with the times. Japan's people are generally well-educated and diligent. They will find something better to do with their time if their crappy employer collapses. They will become more productive as a result. It is only through increasing productivity that wages can increase sustainably and economic growth be resumed.
JeffLee
"Remember that corporate tax cut I gave you? Remember all the accomodative monetary policy? Remember all your lucrative procurement contracts and subsidies? Well, guess what. If you refuse to raise workers' wages in line with your higher profits in recent years, then say sayonara to all of that. Otherwise, good luck, because you're really going to need it."
Roger Jolly
Ha ha ha... why does he not lower income and consumtion taxes instead?
Yubaru
This is one time I would love to post this from Godzilla!
http://www.motifake.com/godzilla-facepalm-godzilla-facepalm-face-palm-epic-fail-demotivational-posters-61115.html
Peter Qinghai
The key word here is ask. Don't set a mandatory 'living' wage, or other sort of legislation designed to help the masses.
Ask big business to do it. Oh, and those 1%ers will gladly respond...
takeda.shingen.1991@gmail.com
Just another thing to add: What percentage of jobs in Japan are at large Japanese firms? To the best of my understanding, less than 5% of jobs in Japan are actually at these large firms. I could be wrong, correct me if I am, but what are the ramifications for everyone else. Certainly won't mean more money for small and local businesses, or medium sized enterprises for that matter.
I'm all for increasing wages, when it makes economic sense, but politicians begging companies to fight back against the inevitable is just embarrassing.
Yubaru
It makes economic sense for Abe, but what he is asking of companies is to increase wages on the IDEA that the economy will improve AFTERWARDS to justify the increase.
He is asking them to make a leap of faith, based upon Ahonomics. Any intelligent business owner would be telling Aho to take a long walk off a short pier!
geronimo2006
He must get a bit fo political mileage out this kind of stunt. Costs him nothing, doesn't take any of his time or require any commitments by him or his government. Nothing will happen. Pathetic. Action needed not words.
toshiko
Abe should propose agenda that work hours a week is forty house and no weekends works. Then inimum wage for one hour. Mandate.
biswarup5
Thank you Abe-san
Serrano
Sadly, my company will once again ignore Abe's plea.
CoconutE3
If companies can't raise wages, then at least give a total of 1.5 bonuses (half at summer and other half at winter.)
ushosh123
Ok,
All of Abe's subordinates should submit a request for wage increase immediatly, citing the reason as Abenomics, and profit!
fxgai
Serrano, if you are unhappy with your deal, why not take your services elsewhere? Are you employed by your relatives or something?
JeffLee
You don't think that Abe and other Japanese policy-makers don't know that? The big firms are standard-setters - what they do ripples thru japanese industry, ie, the hundreds of suppliers they rely on. A rising tide raises all boats, etc.
fxgai
Big firms hiking wages based on requests from politicians strikes me as being highly unlikely to have such a "ripple" effect. It's a redistribution of money from business owners to those workers. This aptly described ripple doesn't constitute a rising tide for all boats.
The rising tide lifting all boats metaphor refers to situations where there are improvements in the broad economy. That means wins for both business owners and workers. But Japan's workers favour job stability over wage increases in return for higher productivity, so it's hard to see a rising tide coming to Japan anytime soon.
JeffLee
There has already been a massive "retribution of money" from the public to private sectors. That's why the public sector is in deficit while the private sector is running a massive surplus, ie, record profits and savings.
"...where there are improvements in the broad economy."
Which would most easily occur through a fiscal and monetary re-balancing: taking money out of the bloated supply side (corporate sector) and hand it to the leaner demand sector (workers). After all, who are those business owners' customers? Ultimately they are "those workers."
Money mostly flows around, not in and out, in an economy.
fxgai
It's not that the public sector has "redistributed" money, it has simply indebted the tax payers through spending, but whatever - public sector borrow-and-spend policies seeking to initiate a money merry-go-round evidently haven't resulted in a rising tide to lift all boats.
And those workers are employed by those business owners... because?
Entertain the thought - "Say sayonara to your profits, companies!" say the central planners. This will hit stock prices, and diminish the incentives for investors to take risks in having their businesses produce good and services. This is bad for productive companies and therefore their workers too.
Assume the best, that the workers get a decent cut of the money from the government. They still will not say "woohoo!" and spend it, because they see that the stock market has crashed, and they are worried about their future.
Ripples, yes, but no increase in economic activity. More probably a decrease.
Economic growth, starts with people taking the risk to produce & provide goods and services in the hope of bettering their lives. Not with people having more zeros in their bank accounts.
toshiko
Legalize worker protection in Japan or Corporations have to complain worker shortage forever.
JeffLee
Nope. 60% of Japan's GDP comes from consumption. Growth is slow mainly because employers are increasingly hoarding their profits instead of offering better financial incentives to their workers.
"... it has simply indebted the tax payers."
Actually Japanese financial household assets hit a record high last month. check the data
"....because they see that the stock market has crashed...."
Huh? The Nikkei ended the year at a 20 year high last week. Are you allergic to facts, or what?
vinarius@pm.catv.ne.jp
Dear Mr Abe, I understand that U are from a very wealthy family in Yamaguchi ken ( chosyu ) , there is another part of the world in Japan where small & medium business have to work very very hard to earn their living and that of their employees who are normal people. These people who work very very very hard are not seeing their hard work being rewarded , e.g farmers, fishermen or medium size companies. If U want salary raised, I suggest , U disguised yrself and go to work in a middle size company or real small size company and see, what is truly happening. this kind of experiences will help U run Japan in the true sense of the business world in Japan. Small & medium size company have to make money, they cannot print money like the bank of Japan. Trust me, this suggestion will bring u closer to the Japanese people.
fxgai
If people work hard want more, the reality is they need to earn it somehow. Work even harder so as to produce more, or work the same (or less) but be more productive. Or change jobs to where there is a better deal on offer for the same work. Or become a business owner themselves, or make use of any loopholes in the tax system, etc. etc. Abe is a failure but then people shouldn't be expecting him to tie everyone's shoelaces.
JeffLee, the P in GDP stands for Production. Consumption only gets a mention because it's used as a method of measuring the value of what has been produced. There can be no consumption without production first.
Employers employing employees at wage levels that employees continue to be prepared to work for is not the cause of Japan's stagnant economy - it is a consequence of it. To get wage levels up, there needs to be more demand for labour (and a market-based labour market to begin with).
Yeah, just ignore the debts racked up on their behalf. That'll work.
Yes, that is what would happen should the central planners implement the anti-business policies that you prescribed above.
What significance do you feel the closing level on the last trading day of a calendar year has? It's also a fact that the Nikkei ended more than 1,000 points lower than its recent peak in August 2015, and is roughly half its all-time peak. Sniffle?
Pukey2
There, Abe asked. You can't blame him for doing nothing.
Aly Rustom
Raise the minimum wage yourself, Jackass! Are you the PM or what?? If you can force unpopular legislation down the japanese people's throats AND freely print money to help your corporate cronies get rich, why do you have to ask the companies to rasie wages? Why can't you do that yourself?
JeffLee
LOL. No it doesn't. It stands for "product." Well, at least one of us has the basic facts on his/her side, eh?
JeffLee
LOL. No it doesn't. It stands for "product." Well, at least one of us has the basic facts on his/her side, eh?
nath
If Abe were serious about this proposal, his government could legislate an increase in the minimum wage, or demand that companies pay employees for overtime. Neither will happen on his watch.
Citizen2012
I am asking Abe to stop wasting tax money and instead forward it to all employees in Japan to boost the economy.
fxgai
Nice come back jefflee! You sure got me this time!