Nearly 3 out of 4 Japanese citizens say that they are not feeling or experiencing any benefit from Japanese Prime Minister Shinzo Abe’s aggressive fiscal policies that were implemented at the beginning of his rise to power, nicknamed “Abenomics” by industry experts. This information is from a recent survey by the Kyodo News organization which shows that 73% of the survey respondents say that the policy package intended to weaken the yen plunging and boost the stock market has had no beneficial effects on their lives.
In contrast, only 25% of respondents responded to the survey saying that Abenomics has had tangible effects on their lives. Abe had programmed his administration’s fiscal policy to include huge stimulus spending and massive monetary easing targeted to battle Japan’s more than 15 years of chronic deflation. While the data is not substantial, the information points to anecdotal evidence that the economic recovery is having little impact on the majority of the population – most of whom do not own stocks. The stock market has improved under Abe’s administration, but most experts say that the real harbinger of economic recovery will be the people and their confidence to spend.
The results of this new survey will not be encouraging to Abe, who was at the World Economic Forum last week speaking about Japan’s progress in healing the underperforming economy on his watch. “Japan’s economy is just about to break free from chronic deflation,” Abe said in his keynote address. “This spring, wages will increase. Higher wages, long overdue, will lead to greater consumption.” However, it seems that the people do not actually believe that their wages will increase. More than 66% of the respondents said that they do not pay increases this year, against the 28% who are expecting wage adjustments for the better.
[via Economic Times]