Editorial: Japan needs to rebuild economic base to support people's lives April 30, 2025 (Mainichi Japan) Japanese version Naoki Kobayashi engages in plating work at a factory in the city of Saitama on April 8, 2025. (Mainichi/Jun Kimura) Eighty years since the end of World War II, Japan's economy is facing a significant headwind. Prolonged high prices are making life increasingly difficult for citizens. On top of that, high tariffs imposed by the administration of U.S. President Donald Trump are shaking the automobile and other core industries. The people hit hardest are those in vulnerable positions. Naoki Kobayashi, 52, the president of a small factory in the city of Saitama, works hard with seven employees to apply plating to screws, a crucial process in automobile and home appliance manufacturing. If the plating is too thin it won't prevent rust, and if it's too thick it makes the screws difficult to tighten. The company possesses the technology to adjust the thickness to within a thousandth of a millimeter. In 1954, when Kobayashi's grandfather founded the business, Japan was entering a period of rapid economic growth
ブランドコピーN級品 and the factory ran at full capacity. However, since the 1990s, competition with Chinese firms has intensified, with clients repeatedly demanding cost reductions. The situation worsened after the Russian invasion of Ukraine due to a surge in raw material and transportation costs. If high tariffs further reduce exports of automobiles and other goods, orders could drop. Tough times for a company that supported Japan's growth Kobayashi is concerned about his employees' livelihoods. With monthly salaries hovering around 200,000 yen (approx. $1,400), rising commodity prices inevitably makes things more difficult for them. The company, however, has no leeway. To raise his employees' monthly salaries by 10,000 yen (roughly $70), he decided to cut his own pay. The government claims that "prices are rising and wages are increasing, creating a virtuous cycle." But Kobayashi feels that's not the world he's living in. Japan's postwar economy built a pyramid production system, with major automobile and appliance manufacturers at the top and many small and medium-sized companies supplying parts. High growth during this period created a vast middle class, giving rise to the "middle class of 100 million" description of Japan's population. However, after the economic bubble burst, Japan fell into a prolonged deflationary recession. Globalization of economies also intensified international competition, leading to a surge in non-regular workers on low wages, widening income disparities. Japan has indeed shown signs of emerging from deflation with the recent price increases. Last year, stock prices hit record highs, and Japan's nominal gross domestic product (GDP) surpassed 600 trillion yen (about $4.2 trillion) for the first time. However, the reality remains harsh. The real GDP growth rate after accounting for inflation was only 0.1% last year. Wage growth has not kept pace with rising prices. There is a need to confront the structural problems that Japan's economy faces. Abenomics, the economic policy mix of the late Prime Minister Shinzo Abe, aimed to overcome deflation. Under this initiative, large-scale monetary easing led to depreciation of the yen
ブランド激安市場 boosting exports and improving the performance of large corporations. However, the "trickle-down" effect to small and medium-sized enterprises did not materialize. The latest wage increases are primarily due to the improved performance of large companies because of the weaker yen and an increase in exports. In the meantime, depreciation of the yen has led to higher prices
スーパーコピー財布 while the benefits have not extended beyond large corporations. Earnings of small and medium-sized companies are being squeezed by rising raw material prices. Retail and other service industries are also suffering from sluggish consumption. Many businesses have low productivity, raising the risk of prolonged wage stagnation. Prime Minister Shigeru Ishiba, second from left, speaks at a meeting of the headquarters on comprehensive measures on U.S. tariffs
新作ブランドコピー at his office on April 25, 2025. (Mainichi/Akihiro Hirata) In Japan, domestic demand including consumption has been weak, and the economy has long relied on U.S. exports and a weak yen. Washington's high-tariff policy has zeroed in on these weaknesses. From reliance on the U.S. to domestic demand-driven growth Jitsuro Terashima, chairman of the Japan Research Institute, points out, "Postwar Japan sought 'industrial creation for prosperity and growth' centering on export companies that would earn foreign currency," Now, however, he argues that a shift to "industrial creation for the security of the people and stability of life" is necessary. "We must support those who polish their skills to quietly sustain industry's front lines," he says. Many small and medium-sized firms excel in manufacturing
時計スーパーコピー one of Japan' strengths. There have been moves to break away from subcontracting and develop unique products using their technology. Increasing productivity and wages through digitalization is also necessary. There is an urgent need to change the structure that has relied on non-regular workers, who make up nearly 40% of Japan's workforce. Many of them are "essential workers" who support social infrastructure in sectors like caregiving, logistics and retail. Promoting a shift to regular employment and accelerating minimum wage increases are essential. As Japan's population declines, maximizing individual potential is becoming increasingly important. If workers move from companies that are unable to adapt to changing times to fields where growth is projected, they can expect wage increases. Expanding opportunities to learn new skills and acquire knowledge is vital. The task is to correct the distortions in Japan's economy and rebuild its foundations to support people's livelihoods. If people can live with peace of mind, it will stimulate consumption, providing the opportunity for a shift to a domestic demand-led economy. What Japan needs is a vision to achieve this virtuous cycle. Font Size SML Print Go to The Mainichi Home Page Related Articles Rice prices in Japan up for 16th straight week, hit new high despite gov't reserve release As prices rise, is battle heating up between domestic, foreign tourists for Japan hotels?
