Japan Inc.'s Big Profits Didn't Translate to Wages

The video discusses the annual wage talks in Japan, known as 'shonto', which are backward-looking, considering last year's economic conditions like deflation and currency changes. Despite a positive wage increase, it's lower than the previous year due to deflation and a strong yen. This situation is unlikely to boost consumer spending significantly, as predicted inflation and wage raises are minimal, making it a challenging year for consumers.

What is the primary reason for the smaller wage hikes in Japan this year?

• Strong consumer spending

• High economic growth

• Backward-looking wage talks

• Increased inflation

What was the significant change in the yen last year?

• It depreciated significantly

• It remained stable

• It surged close to 100 yen to the dollar

• It was unaffected by global markets

How does the yen's performance last year affect this year's wages?

• It is accounted for in this fiscal year's earnings

• It leads to higher wages

• It has no effect

• It causes wages to decrease

What is the predicted inflation rate for Japan this year?

• 0%

• 3%

• 2%

• 1%

How will the small wage increase affect consumer spending in Japan?

• It will significantly boost spending

• It will have no impact

• It will be quickly offset by inflation

• It will lead to a decrease in spending