February 21, 2013
Japanese Communist Party councilor Daimon Mikishi on February 20 in an Upper House Budget Committee meeting demanded that the government raise the minimum wage and take drastic measures to support small and medium-sized businesses to pull Japan’s economy out of the current deflation.
The lawmaker pointed out that the easy-money policy implemented by the Abe Cabinet has caused the yen’s sharp fall, leading to the price rise of imported goods such as foodstuffs, kerosene and gasoline. He stated that if a 2% inflation target, which Abe is aiming at, is achieved without a wage hike, people’s lives will become more precarious.
Daimon pointed out that Japan’s hourly minimum wage is only 749 yen on average, hovering at the lowest level among economically advanced nations. He also noted that the U.S. administration has taken the initiative and continuously raised its minimum wage by nearly 200 yen since 2007, which contributed to its economic recovery and attracted the support even from business owners.
Unlike large corporations accumulating enormous internal reserves, small enterprises need government support to increase their workers’ wages, Daimon said, referring to the fact that the amount of money used for SMEs came to 880 billion yen in the U.S. over the past five years and 2.28 trillion yen in France over the last three years, while the Japanese government subsidies to them have amounted to no more than 11.17 billion yen for three years since 2011. The parliamentarian argued that the administration should implement support measures for SMEs on a large scale.
Prime Minister Abe replied, “Your point is important. I want to consider ways to back up small and midsize companies.”
Related past article:
> Ichida: 2% inflation target runs counter to rise in domestic demand [January 23, 2013]
The lawmaker pointed out that the easy-money policy implemented by the Abe Cabinet has caused the yen’s sharp fall, leading to the price rise of imported goods such as foodstuffs, kerosene and gasoline. He stated that if a 2% inflation target, which Abe is aiming at, is achieved without a wage hike, people’s lives will become more precarious.
Daimon pointed out that Japan’s hourly minimum wage is only 749 yen on average, hovering at the lowest level among economically advanced nations. He also noted that the U.S. administration has taken the initiative and continuously raised its minimum wage by nearly 200 yen since 2007, which contributed to its economic recovery and attracted the support even from business owners.
Unlike large corporations accumulating enormous internal reserves, small enterprises need government support to increase their workers’ wages, Daimon said, referring to the fact that the amount of money used for SMEs came to 880 billion yen in the U.S. over the past five years and 2.28 trillion yen in France over the last three years, while the Japanese government subsidies to them have amounted to no more than 11.17 billion yen for three years since 2011. The parliamentarian argued that the administration should implement support measures for SMEs on a large scale.
Prime Minister Abe replied, “Your point is important. I want to consider ways to back up small and midsize companies.”
Related past article:
> Ichida: 2% inflation target runs counter to rise in domestic demand [January 23, 2013]
