BOJ counts on spending of 50 trillion yen in forced savings | The Asahi Shimbun: Breaking News, Japan News and Analysis

1 comment

1. >“If they are spent, that would reinvigorate the economy and likely lead to wage increases,” the official said.

   Sure, because companies totally increased wages when they increased their profits under Abe thanks to his fiscal policies and the weaker yen at the time, right?

   No, wait, they just sat on the money. Just in case things might change for the worse again economically speaking.

   Without clear prospects for salary raises (which at the very least maintain pace with inflation), many people will simply bunker down and save even more money, rather than spend it on luxury goods or tourism. Any spending increases will likely just be focussed on daily necessities, and even then, solely because everything is becoming more expensive, not because people *want* to spend more.

   You can’t expect people to start spending money if their financial future looks bleak. That should be common sense.