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China Now Has Company In Showing Japan Who’s Boss

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Another blow to Japan's national pride looms as South Korea and Taiwan look likely to surpass Asia's second-largest economy.

When Abe did put on his reformer’s hat it was to enrich wealthy owners of stocks and real estate. Average wages stagnated, setting the stage for Korea and Taiwan—also students of Japan’s development model—to show up the teacher.

Abe went the Ronald Reagan route, giving 1980s-style “trickle-down economics” another try. Kishida wants to incentivize companies through tax benefits and regulatory inducements to share profits with workers. He hopes to prod CEOs to take big risks again with new research-and-development expenditures to devise game-changing technologies.

This outcome would be partly about top-line economic growth. Japan is seen expanding an average 2% annually through 2035, roughly half the 4%-plus rate expected for Korea and Taiwan. It’s also about the policy mix at the government level.about $40,000What’s sure to limit Japan’s wage growth is weak productivity, a product of rigid, seniority-based and risk-averse labor practices.

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