The claim that Japanese people are fond of saving is a misconception, and the observation that corporate retained earnings have pushed down real wages is presented as part of the background to the decline in household purchasing power.
This article examines the claim that the commonly held view that Japanese people are fond of saving is a misconception. It discusses households’ actual perceptions of wages and changes in purchasing power, and presents views on the relationship between saving preferences and wage growth.
Among the central claims is the analysis that corporate retained earnings have pushed down real wages. Data and arguments concerning the relationship between rising retained earnings and stagnating real wage growth are laid out.
The background is also said to include rising living costs, price trends and changes in household spending patterns. The article concludes that discussion continues over the relationship between wage trends and purchasing power.