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Jeremy Fennema – Tech Innovation Alchemist
What’s going on:
In June, Japan will put forth a blueprint for “new capitalism” which will emphasize salary boosts, fostering innovation, and find solutions to social challenges through bolstering start-ups, Prime Minister Fumio Kishida said on Wednesday.
As Japan confronts an unprecedented labor shortage due to its aging population, Kishida has made human capital investment the foundation of his plan, according to Reuters.
Why it matters:
Japan’s prime minister has dubbed his plan as “new capitalism” because he intends to remedy the negative effects of widening inequality in his country.
Kishida declared that Japan would try to lessen wage disparities between domestic businesses and international opponents by driving structural wage boosts.
How it’ll impact the future:
Salaries have been virtually unchanged since the late 1990s in Japan, so this new plan might have the intended and positive impact on Japan’s economy/workforce.
