Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Japan PM vows to ensure workers' wage hikes to guard against global inflation

EconomyDec 06, 2021 12:35AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: Japan's Prime Minister Fumio Kishida speaks to media at his official residence in Tokyo, Japan November 24, 2021. Mandatory credit Kyodo/via REUTERS/File Photo

TOKYO (Reuters) - Japanese Prime Minister Fumio Kishida vowed on Monday to ensure workers' wage hikes through tax breaks to protect the economy from the impact of rising global inflation and to achieve a virtuous cycle of economic growth and wealth distribution.

Kishida made the pledge on the opening day of parliament's extra session convened to debate a supplementary budget with a record 36 trillion yen ($318 billion) in spending to cushion the blow from the COVID-19 pandemic.

He vowed to restore the economy and then tackle fiscal reform, saying the order must not be put wrong.

Wage hikes hold the key to the premier's aim of defeating deflation by reversing a cycle of tame wage growth and weak consumer spending while encouraging Japanese firms to spend their record cash piles on boosting wages and investment.

"As anxiety has grown that rising global inflation may have ripple effects on Japan, I will do the utmost to (realise) wage hikes in order to protect the Japanese economy," Kishida said.

"When we urge private-sector firms to raise pay, we must create a virtuous cycle of wage hikes and corporate growth to enable sustainable wage hikes."

Kishida vowed to lay the groundwork to help private-sector firms hike wages by strengthening taxation and give bold deductions for companies that raise pay.

Loss-making small firms that raise wages will receive special subsidies, he said.

Since he took office in October, Kishida has piled pressure on Japanese firms, urging those whose earnings have recovered to pre-pandemic levels to raise wages by 3% or more.

OECD data shows Japanese employees' wages have hardly grown over the past 30 years, during which Japan has suffered 'lost decades' of stagnant growth and grinding deflation.

Following a solid election win in October, Kishida has pushed a strategy of "new capitalism" targeting growth and wealth distribution, after eight years of "Abenomics" stimulus policy led by former prime minister Shinzo Abe failed to stoke trickle-down effects in the world's third largest economy.

($1 = 113.2800 yen)

Japan PM vows to ensure workers' wage hikes to guard against global inflation
 

Related Articles

Chile markets rally as Boric readies Cabinet
Chile markets rally as Boric readies Cabinet By Reuters - Jan 21, 2022

By Fabian Cambero SANTIAGO (Reuters) - Chilean investors and traders are on tenterhooks ahead of the expected unveiling of President-elect Gabriel Boric's first Cabinet on Friday,...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email