Abenomics has failed? Japan’s wage reduction leads to a surge in bankruptcy

Japan’s “Modern Journal” magazine reported on February 17 that the number of bankruptcies in Japanese companies began to rise. According to the Tokyo Chamber of Commerce and Industry, in January 2019, it increased by 4.9% over the same period of 2018, reaching 666 cases (the bankruptcy of 10 million yen or more).

The number of bankruptcies in 2018 has decreased by 2% compared with the previous year. Because of this, an abnormality has occurred in 2019, which is worrying.

Market-related personnel believe that “forced wage increase” is concentrated and criticized, but from the perspective of the increase in corporate bankruptcy, it can also be seen that “Abenomics” is false.

Tokyo Chamber of Commerce and Industry Intelligence Minister Yuda Shino said, “In the context of low consumer spending. Why is consumption sluggish? That’s because real wages have not risen. The people are running around in order to control unnecessary expenses for life.” Because of this trend The industry performance close to consumers deteriorated and was forced to go bankrupt."

Abe intends to continue to step on the accelerator to promote "Abenomics", but the Japanese opposition party calculated that the actual salary of the same enterprise from January to November 2018 is about 0.5%. Some big companies are in good shape and the lives of ordinary people have not improved much. If the consumption of 60% of GDP is not restored, it is "Abenomics failure."

Yoshida said that the number of local bankruptcies is expanding. This is the pattern of continued bankruptcy growth.

Japan's Kyushu region increased by 34.7% in January compared with the same period in 2018, the four countries increased by 20%, and the Hokuriku increased by 11.7%, increasing to double digits. Moreover, the listed companies in July last month have also closed down. It is a bread merchant based in Yamagata Prefecture with a debt of 1.959 billion yen.

"Modern Journal" magazine finally said that the Abe government will control the increase of consumption tax in October, not only will the money bag be tightened, but also the operation of the catering industry and small stores will be more difficult. Increasing the bankruptcy is inevitable.