Japan's Economy is Booming, So Where's My Million-Yen Bonus?

The government is rolling in cash and big companies are paying ¥1M bonuses, so why do we all feel broke?

The Party We Weren't Invited To

So, get this. The government just announced that its tax revenue for last year is up by a cool ¥9 TRILLION, hitting a record high. At the same time, Keidanren (the big business lobby) proudly shared that major companies are handing out summer bonuses averaging over ¥1 million.

Sounds like a party, right? Well, according to a Bank of Japan survey, a whopping 93.7% of people feel the economy has *not* gotten better. It’s like hearing loud music and laughter from a massive party next door while you’re sitting at home trying to decide if you can splurge on the premium instant ramen.

Your Pain, Their Gain

So where did all this extra cash for the government come from? Partly from booming corporate profits, which is great. But also… from us. Higher prices mean we pay more consumption tax on everything we buy, and slight wage increases push people into higher income tax brackets. The result? Real wages have actually *decreased* for the fourth year in a row.

Yes, the spring wage offensive (Shunto) saw raises of around 5%, which sounds amazing on paper. But then you look at your payslip and see how much inflation and the mysterious black hole of social insurance have eaten. You end up with just enough extra to cover the new, higher price of your train pass. Maybe.

The Tale of Two Salarymen

Here’s the real kicker: this “good economy” is a very exclusive club. While 94% of large corporations are giving raises, that number drops for the small and medium-sized enterprises (SMEs) that make up over 90% of Japan's companies.

Those are your local ramen shops, the small design firm, the independent grocery store. They're getting squeezed by insane costs for electricity and raw materials and can’t just raise the price of a gyoza set without losing all their customers. It’s a completely different reality from the folks in the Marunouchi high-rises celebrating their ¥1 million bonus.

Thanks for the "Help"

To combat this feeling of dread, there's talk of tax cuts. Sounds great! But let's look closer. A consumption tax cut mostly helps those who spend the most money (read: the rich). A housing loan tax break? Fantastic for people who can afford a giant loan for a new mansion. A gasoline tax cut? A gift to people with multiple cars.

For the rest of us on the train, holding on to a strap and looking at our Suica balance, the benefits are... less obvious. So the big numbers get bigger, but down here on the ground, we're still just checking the price of eggs. 🤔