September 30, 2026

Akahata editorial (excerpts)

The recent Cabinet Office’s business conditions index indicated that Japan’s economic expansion has lasted for 74 months since June 2020. It is probable that it will surpass the “Izanami boom (February 2002 - February 2008)”, which was the previously the longest.

The index, which is released on a monthly basis, assesses economic trends based on indicators related to production and employment, such as industrial production indices, commercial sales, operating profits, and the active job opening ratio.

However, real wages and personal consumption, which are not included in the indicators, show a continuing decline and stagnation.

Real wages have fallen by as much as 12% since 1990, the earliest year for which statistics are available. The inflation rate (excluding imputed rent), which is used to calculate real wages, has exceeded 3% for four consecutive years since 2022. Wage hikes have not kept pace with inflation. Real personal expenditures which account for more than 50% of GDP have barely increased.

Even as large corporations boost their profits and the ultrarich benefit from rising stock prices, the Japanese economy continues to decline. Urgent measures are needed to protect livelihoods and business operations from the negative impact of rising prices.

For example, the consumption tax rate should be lowered permanently to 5% for all items, not just for food products, with the ultimate goal of abolishing this tax. Funding for this measure can be secured with correcting tax cuts and preferential treatment given to big businesses and the wealthy.

The minimum wage should be raised to 1,500 yen per hour across Japan without delays. It is vital to introduce a nationwide uniform minimum wage system so that the gap in regional minimum wages will be eliminated. In order to realize a minimum wage hike, government measures aimed at providing substantial direct support to small- and mid-sized enterprises are essential.

The Takaichi Sanae government in its economic policy turns its back on measures to support households experiencing the cost-of-living crisis. The government, under the pretext of making “Japan stronger and more prosperous”, intends to assist large corporations through government-directed investment of 370 trillion yen over 15 years.

The need now is to change the government to one that creates a society where people can increase their income and live a stable life.