As the government moves ahead with an ¥8 trillion investment in autonomous driving, questions are being raised about claims that it will generate ¥187 trillion in economic benefits and the unrealistic return estimates behind them.
Reports have estimated that an investment of ¥8 trillion in autonomous driving will generate ¥187 trillion in economic benefits. This article focuses on the debate over the validity of such return estimates.
The government has indicated that it plans to increase funding for Rapidus, with the aim of competing with Samsung and TSMC in semiconductor technology at 2 nanometers and below. Experts have questioned whether Rapidus will generate profits, while others argue that attracting TSMC would have been more profitable.
Raising wages is seen as necessary to stimulate the real economy and address excessive cash holdings by companies. Real wages went through a prolonged period of decline, and some have pointed out that steady increases in the minimum wage helped improve workers’ incomes.
The article argues that wage disparities between men and women and between regular and non-regular employees must be addressed. It also points out that past tax reforms and the use of retained earnings failed to translate into higher wages or investment.