In recent weeks, Japan's economy has felt the sting of what analysts are calling the “Takaichi-cost”—a fallout from Prime Minister Sanae Takaichi's controversial remarks that has shaken consumer confidence and rattled markets.
Speaking to CMG, Tanaka Hiroshi, professor emeritus of Hitotsubashi University, painted a stark picture: “Japan's society is facing economic difficulties, with wages stagnating but prices continuing to rise. At times like these, when people are frustrated, politicians often look for somewhere to shift blame.”
Indeed, as inflation outpaces wage growth—consumer prices have climbed by roughly 3% year-on-year, while average salaries saw less than 1% growth earlier this year—political leaders have been quick to deflect responsibility. Opposition figures have blamed global supply chain disruptions, energy costs and even demographic trends, rather than addressing policy missteps at home.
This blame game is not new, but it comes at a critical moment for Japan. With household budgets tightening, young professionals and digital nomads report rising living costs in Tokyo and Osaka, while startups face higher borrowing costs amid market jitters. For multinational businesses and investors watching from abroad, the shifting narrative raises questions about policy stability and Japan's long-term growth trajectory.
Experts warn that sustainable recovery will require more than political rhetoric. “Clear, consistent policy on wages and fiscal support is essential to rebuild trust,” says Tanaka. For globally minded citizens tuning in, Japan's next steps will be a test of leadership and resilience on the world stage.
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Japan's politicians shifting blame to deflect from dire situation
cgtn.com
