Being one of the superpower nations, one would expect that the wages offered in Japan are exceptional. This has, however, not been the case for the past decade until recently when Japan’s Prime minister requested an increase in…
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There has not been any official overall increase in wages since the late 90’s. This means that the economy of Japan has been facing a downhill trend for almost fifteen years. Companies like Toyota and Panasonic were on board with the idea with Toyota promising a point eight increase in overall salary which has had no change since 2008 (Tabuchi 1).
The GDP of Japan has had an increase rate of about one percent per annum, which is a very slow rate for a third best economy state. The move to raise the wages will have an impact overall spending nature of workers, the more the workers have to spend the faster the economy grows. Increase in wages will give a reason for consumers to spend as opposed to the earlier trend where consumers had no need to spend. The increase is a strategy to encourage consumers to let go and spend a little more than they have been in the past. Spending more will eventually lead to an increase in the Nikkei stocks exchange
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These bonds were issued to help avert the European debt crisis. Japan’s purchase of the bonds is motivated by its fear of a possible European crisis which would create a serious global financial crisis. Since Japan’s economy is largely dependent on exports, a worldwide financial crisis will definitely impact negatively Japan’s economy.
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