Increase minimum wage to boost domestic demand: JCP lawmaker

Japan Press Weekly

Japan Press Service Co., Ltd. is the only news agency providing information of progressive, democratic movements in Japan

Increase minimum wage to boost domestic demand: JCP lawmaker

To boost domestic demand, a substantial increase in the minimum wage and in fiscal expenditures for small and medium-sized enterprises are needed, Japanese Communist Party House of Councilors member Daimon Mikishi stressed at the House Budget Committee meeting on October 25.

Prime Minister Kan Naoto responded, "An increase in wages would lead to a domestic demand-led economy. It is an attractive proposal."

The JCP lawmaker said that the minimum wage in Japan is very low in comparison with other advanced countries. Based on purchasing power parity, the minimum wage in the Netherlands is 1,296 yen an hour, in France 1,265 yen, in Britain 1,099 yen, and in the United States 831 yen, while in Japan 730 yen.

Although the prime minister admitted that "an increase of minimum wages is an important policy to lead to a domestic demand-driven economy," he said that he will adopt policies for the expansion of job opportunities to boost the economy.

JCP Daimon pointed out that it is imperative to increase both job opportunities and wages. For this end, the policy to support SMEs is necessary.

In France, 2.28 trillion yen were earmarked (from 2003 to 2005) to support SMEs by increasing the minimum wage, and in the US, 880 billion yen (2007 ? 2011). In Japan, however, only 6.2 billion yen has been requested for 2011. Daimon urged the government to substantially increase support for SMEs.

"It is an attractive proposal," the prime minister replied. Daimon said that the JCP will continue its efforts to have the minimum wage increased by proposing concrete policy measures.

- Akahata, October 26, 2010