I read the article but they missed the point that higher inflation will cause consumers to spend less and ultimately slow the economy, increasing unemployment. Higher unemployment means more competition for jobs and lowball salaries. Now we might not see widespread layoffs here but the average person will be stuck earning peanuts.
Strong wage growth? Anything can be hidden under that lofty title. Many companies here do “raise” wages, but only to cover inflation. The average Japanese here does not know what the inflation rate is and that what they are getting is actually worth less. Or he doesn’t care because “めんどくさい”. Actual pay raises, such as two or one decade ago, where there was an actual pay raise every year at more or less the same inflation rate and currency value, just aren’t there. But people here are not in the habit of questioning anything. If you’re lucky, you get more, but buy the same amount of stuff as before.
I sure won’t get a single yen more, and I’m working at a reasonably large company. LDP has been avoiding the core issues for so long, we’ll end up as a cautionary tale for the rest of the world.
Add comment