J-Vid of Interest - Richard Katz Presentation

Presentation by Richard Katz, editor in chief of The Oriental Economist Report and correspondent for the Weekly Tokyo Keizai, on Abenomics at the Foreign Correspondent Club Japan.

Although Richard is not such a gifted speaker as Jesper Koll, the video is worth watching for those interested in Shinzo Abe’s economic policy.

Especially given the fact that his perception of Shinzo Abe’s economic policy is in most aspects completely different to Jesper’s.

Key points made:

• Katz not a believer in Abenomics

• Japan trapped in institutions that are dysfunctional

• Shinzo Abe has no vision. Abe is not a reformist and he hasn't got a plan.

• Abe totally wrong on wages, inflation and spending. He will not able to raise real income. Rather the opposite, as real income keeps on falling

•  No link between inflation and spending, but rather on real income expectation and spending

• Especially critical about consumption tax hike. Should have been delayed

• Japan is not Greece, because its debt not owned by foreigners

• Structural reform actually not an Arrow, but rather a thousands of needles. 

• One big needle would be tackling the issue of irregular workers. Equal pay for equal work ==> raising fertility

• Social safety net extremely thin in Japan. Increase Social Safety net in Japan and increase flexibility of labour market

• Japan has no creative destruction system in consumer electronics. Where are the challengers of incumbent in Japan?