(Version in 日本語)
Everybody agrees: wages need to grow if Japan is to make a definite escape from deflation. Full- time wages have increased by a mere 0.3 percent since 1995! For example, despite its record profits, Toyota increased its base salary only by 1.1 percent last year. The average of 219 Keidanren firms managed just 0.44 percent. Clearly, an increase in base wages, colloquially referred to as “base up”, is long overdue.
Filed under: Financial markets, Fiscal policy, IMF, International Monetary Fund, Japan, Reform | Tagged: Abenomics, debt, deflation, domestic tax revenues, employment, fiscal policy, GDP, IMF, iMFdirect, International Monetary Fund, Japan, social security benefits, wages, yen | Leave a comment »