Editorial

15:00 JST, July 17, 2025

To realize wage increases that will overcome rising prices, it is essential to strengthen the earning power of companies. In the ongoing House of Councillors election campaign, political parties should compete with each other on strategies to boost investment for that purpose.

There is no question that large wage increases are necessary in the attempt to break the Japanese economy out of its long period of stagnation, also known as the “lost 30 years.”

However, while major listed companies have attained record earnings for four consecutive years, wage increases have not kept pace with rising prices. Real wages have been on a downward trend since spring 2022, in effect making the sense of stagnation more pronounced.

Under such circumstances, political parties are competing with each other through their plans for tax cuts or cash........

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