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introduction

In Japan, a gap between the poor and the rich is widing because of abenomics. Abenomics made the yen weaker and made prices higher. It is true that rich people have little effects, but others suffering from high price; their income doesn’t increase, while the prices become higher. As a result, the devision between the poor and the wealthy is happened.

causes

Why the income gap between the rich and the poor is widening because of abenomics, which has been conducted by Prime Minister Abe? Due to abenomics, stock prices have been increasing and the yen has been depreciating. Generally speaking, rich people have many stocks and often play the stock market, so they are getting more and more willing to buy expensive luxuries such as brand-name watches or famous paintings because they can gain a lot of profit thanks to the high stock prices. Morever, multinational big companies have been making a lot of profit because of the depreciation of yen. In general, products made in Japan sold well in other countries when the yen is weak. That’s why such companies which import materials, process them and export processed products can gain a lot of profit. Wealthy people who are in the important positions in such companies can get a lot of money. On the other hand, domestic small or medium companies haven’t yet benefit from the depreciation of yen. Such companies tend to import materials and sold processed products “in Japan”, not in other countries. Abenomics prevent such companies’ products selling well because the prices have been increasing. People who work for such companies cannot get much money and they get poorer and poorer. Needless to say, such people don’t have stocks and don’t play stock markets. That’s why the income gap between therich and the poor is widening.

effect

The depreciation of yen and high stock prices caused by abenomics make rich people richer and make poor people poorer. People who have s benefits bytock or property get more increasing rise of price of stock and lands. Then they are more eagr teo buy luxury godos, for example, art works, juwery, watches, degital single-lens reflex cameras and new apartment buildings. And actually their proceeds are growing. (2013, Japan Press Weekly) On the other hand, average and poor people are suffering high prices. Depreciation of yen makes price of imported goods, including grains and oils, higher and higher. Gasoline prices recorded 161 yen in September, 2013, which was the highest price since 2008. (2013, K. Ujikane) other goods` prices also rise. MOS Food Services raised the price of humbergers, Yakult honsha started to sell the drink whose price 14 percent higher than its old drink and Nihonsakari raised the price of its nationally popular alcoholic drink. On the whole, consumer prices became 0.8% higher in August , 2013 than the begining of the year. Moreover, the sales tax were raised in April 2014 to 8% from 5%, and it will be 10% in 2015. Owing to the high price and tax, sales of some convenient store decreased. Abenomics changes not only prices but also environment of workers. Corporation tax were cut, which is joyful for companys. (2014, Fuyūsō ni yasasiku, wākingupua ni kibisī “abenomikusu.” Kakusa shakai ha kōsite tsukurareru.) On the other hand, the restriction on temporary labor are being loosed. (2014, Hayashi K.) This makes company more free about employment, but for worker, this is frightening. This is how, the gap between people who have and not have are certainly widening. Actually, 16% people can be regarded “poor” class.(2014, Fuyūsō ni yasasiku, wākingupua ni kibisī “abenomikusu.” Kakusa shakai ha kōsite tsukurareru.) And this unfairness may change Japanese society, which used to be proud of its equality. (2013, Ujikane K.)

treatment

It is true that stock prices is high, and the yen is weak because of abenomics. However, the poor suffer from high prices so gap is becoming wide. Japanese politicians are wishing companys to raise poor people’s income. Politicians think that people can lead a good life economically, as more income they get. They are actually wishing, but the trush of matter is they are doing little thing. Japanese government is still proceeding abenomics, finding that the gap is spreading. (2013, Ujikane K.) Thesedays, a study,which is offered by OECD shows that Japanese poor rate of working family and family having children are increasing. This phenomenon is happened in Japan only. No other OECD countries shows this phenomenon. Some people says that Japanese government should introduce foreign style, for example American style; increase the tax from worker’s income, in other words, don’t increase the tax for things. But now, most of Japanese politicians insist that making tax for things high will help poor people, and using that system. (2014,Chang-ran K.)

Related pages

• Abenomics