Japan Hits the Skids

[unhappycamper]

http://smirkingchimp.com/thread/mike-whitney/56165/japan-hits-the-skids

Japan Hits the Skids
by Mike Whitney | May 31, 2014 - 8:39am

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Abe’s retail bloodbath is the result of a class-based economic policy that attempts to shift more of the nation’s wealth to fatcat stock speculators, corporations and establishment elites while the working people shoulder more of the costs of funding the government. Behind the public relations hype about “fighting deflation”, Abenomics so-called “structural reforms” are nothing more than a full-on attack on the meager incomes of Japan’s working people, 37 percent of whom are limited to part-time work with no benefits, retirement, health care or security. For these people–who number in the millions–life has only gotten harder under Abe.

At the same time, corporate bosses and the IMF are encouraging Abe to implement unpopular economic reforms quickly before the economy slides back into recession. The anti-worker “third arrow” of Abenomics will further undermine job security and working conditions while cutting corporate taxes. According to the Japan Times, “The Cabinet is likely to approve this year’s growth strategy on June 27? which will involve “corporate tax cuts…reforming public funding, utilizing foreign labor, promoting entrepreneurship and more women in the workforce, and revitalizing local economies.” In other words, tax breaks for big business, slashing public spending, more cheap foreign labor, tax incentives for startups, and “special strategic zones” where worker safety and other regulations are jettisoned so corporate kingpins can rake in more dough. Abe’s third arrow is a wish list for voracious CEOs and carpetbagging business tycoons whose only objective is to extract more wealth from the sweat of working people.

Abenomics has been particularly destructive for those living beneath the poverty line, Japan’s down-and-outs. Besides raising the national sales tax, Abe has cut welfare benefits to shore up the governments flagging finances. The policy has triggered a sharp uptick in the number of working poor. According to the Japan Times, “the number of part-time, temporary and other non-regular workers who typically make less than half the average pay has jumped 70 percent from 1997 to 19.7 million today — 38 percent of the labor force.” This is the crux of the problem that you will not read about in the business-friendly, pro-corporate dissembling media, that is, that Japan’s economy suffers from chronic lack of demand due to falling incomes, shitty wages and system that favors the upward distribution of wealth. All of these have gotten worse under the exploitative leadership of Shifty Shinzo, Japan’s all-time worst PM.

~snip~

Also, higher inflation coupled with droopy wages (wages dropped 0.1 percent year-over-year) have pushed consumer confidence to its lowest level since 2011. Recent data show that consumer confidence plunged to 37.5 percent, the worst since the right-wing Abe took office. Additionally, Japanese Prime Minister Shinzo Abe is about to drive the so called misery index, “which adds the jobless rate to the level of inflation, to its highest level since June 1981 when Japan was emerging from depression after the oil shocks of the 1970s.” (Bloomberg)