Leadership Promises 50 Percent Salary Increase by 2040 Amid Political Challenges
Japanese Prime Minister Shigeru Ishiba has outlined key campaign promises for the upcoming summer Upper House election, vowing to achieve a 50 percent increase in national average wages and propel Japan’s nominal GDP to 1,000 trillion yen (approximately $6.9 trillion) by 2040.
The announcement comes as the minority government leader faces mounting pressure to demonstrate tangible economic progress. Speaking to reporters in Tokyo on Monday evening, Ishiba stated, “I have instructed senior party members to prioritize these two targets as our core election commitments.”
The pledges surface against a complex backdrop. Since suffering a significant defeat in last October’s Lower House election, Ishiba’s administration has grappled with simultaneous challenges including tariff negotiations with the Trump administration and persistent domestic inflation pressures.
While the 1,000 trillion yen GDP target was initially proposed last year, Ishiba’s renewed emphasis has brought it back into focus. The prime minister revealed plans to disclose fundamental economic policy principles this week, aiming to build national consensus around his vision for a “resilient Japanese economy.”
Economists note that achieving the 50 percent wage growth target by 2040 would require an average annual salary increase of approximately 2.74 percent—slightly above recent monthly nominal wage growth rates. Japan’s nominal GDP reached a historic high of 609 trillion yen in 2024.
LDP Secretary-General Shigeru Moriyama endorsed the targets on Monday, calling them “ambitious yet essential goals that must be realized.”
Government Contemplates Cash Handouts Amid Soaring Prices
Media reports Tuesday indicated the ruling Liberal Democratic Party is considering distributing several hundred dollars in cash payments to citizens ahead of the summer election to offset rising living costs. Discussions are ongoing regarding whether to implement income thresholds for recipients.
Inflation data released by the Ministry of Internal Affairs and Communications at month-end May showed Japan’s core CPI rising 3.5 percent year-on-year in April—accelerating from March’s 3.2 percent increase. Rice prices emerged as a primary driver, surging 98.4 percent compared to the previous year—the most significant jump since record-keeping began in 1971.
Ishiba and Agriculture Minister Shinjiro Koizumi have pledged to halve rice prices to around 2,000 yen per 5-kilogram bag. Under Koizumi’s leadership, the Agriculture Ministry has bypassed traditional distribution channels, selling government reserve rice directly to retailers at fixed prices.
Preliminary results suggest these measures are gaining traction. A public opinion poll released Monday by NHK showed Ishiba’s approval rating climbing six percentage points to 39 percent, while another survey by ANN recorded a seven-point increase to 34 percent. Notably, 74 percent of respondents in the NHK poll expressed support for the fixed-price rice sales initiative over auction-based distribution.
The prime minister’s approval ratings appear to be recovering as these economic initiatives take effect, though analysts caution that sustained implementation will be critical to maintaining momentum through the election period.
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