January 13, 2011
As of the end of 1999, 52,525,000 people were working in the private sector as salaried workers. They received salaries of 217.5 trillion yen in total, 4,140,632 yen per worker.
Ten years later, the number of salary earners increased by 1,359,000 to 53,884,000 as of the end of 2009. However, the total amount of salaries paid to them was 192.5 trillion yen, down 25 trillion yen from 1999; 3,572,010 yen per worker, down 568,622 yen.
This was revealed in the annual survey of the National Tax Agency, but the numerical data do not reveal the situation of individual workers or companies.
However, if the total payroll increases by 25 trillion yen and returns to the same level as it was in 1999, the yearly salary per worker would be about 4,030,000 yen, an increase of 460,000 yen from the actual income of 2009, though falling short of the yearly income of 1999 due to the increase in the number of workers.
If the workers were to use 60% of the 25 trillion yen for shopping, dining, or leisure activities, 15 trillion yen will be in circulation helping to boost the nation’s economy and tax revenues. During the past ten years, revenues from income tax, which is withheld from workers’ salaries, decreased by more than two trillion yen due to the fall in income.
Corporate internal reserves are constantly rising in inverse proportion to the amount of workers’ salaries or of tax revenues. Why not use a portion of those funds to increase salaries? Companies with a capital of more than one billion yen increased their internal reserves by 37 trillion yen between FY2007 and FY2009 alone. The 25 trillion yen is less than the amount they accumulated in just two years. Even if they cut into their excessive savings to implement a pay hike, they would experience no negative effects. Just from these rough calculations, we can see a clear exit from the so-called present stagnant conditions.
Ten years later, the number of salary earners increased by 1,359,000 to 53,884,000 as of the end of 2009. However, the total amount of salaries paid to them was 192.5 trillion yen, down 25 trillion yen from 1999; 3,572,010 yen per worker, down 568,622 yen.
This was revealed in the annual survey of the National Tax Agency, but the numerical data do not reveal the situation of individual workers or companies.
However, if the total payroll increases by 25 trillion yen and returns to the same level as it was in 1999, the yearly salary per worker would be about 4,030,000 yen, an increase of 460,000 yen from the actual income of 2009, though falling short of the yearly income of 1999 due to the increase in the number of workers.
If the workers were to use 60% of the 25 trillion yen for shopping, dining, or leisure activities, 15 trillion yen will be in circulation helping to boost the nation’s economy and tax revenues. During the past ten years, revenues from income tax, which is withheld from workers’ salaries, decreased by more than two trillion yen due to the fall in income.
Corporate internal reserves are constantly rising in inverse proportion to the amount of workers’ salaries or of tax revenues. Why not use a portion of those funds to increase salaries? Companies with a capital of more than one billion yen increased their internal reserves by 37 trillion yen between FY2007 and FY2009 alone. The 25 trillion yen is less than the amount they accumulated in just two years. Even if they cut into their excessive savings to implement a pay hike, they would experience no negative effects. Just from these rough calculations, we can see a clear exit from the so-called present stagnant conditions.
