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Japan's Economic Challenges

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2009-03-24

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RENGO‚ or the Japanese Trade Union Confederation is Japan's largest trade union.
Normally the RENGO is a soft-spoken organization. The fact that they have taken to the streets shows how bad the economic situation is in Japan. The failure of Lehman Brothers last year‚ spread quickly to Japan. Economic activity has been slowing down while job loss has been accelerating‚ bringing the number of layoffs up to 157 thousand.
[Interview] "The government has decided to provide support for housing and living. Low interest loans for housing and living expenses are provided up to a maximum of 17‚610 US dollars."
In early March‚ Japan paid a nationwide benefit an allowance of sorts to stoke consumer spending‚ but the response is negligible.
[Interview] "That's not enough. It should be at least 315 dollars."
[Interview] "It's a nice perk‚ but it's only temporary. I don't think it will make a difference. There must be different things they can do."
[Interview] "I think it would be better to spend the money on more fundamental changes."
We met a small company in Tokyo that connected crab fishers directly to online customers.
They recently reduced their price to match the amount of the government allowance.
The "benefit crab set" is a blast and orders are rolling in.
[Interview] "I thought it might work if we added a little value to our products. And I also hope that the public will find strength after eating our crabs. So we named this the "fixed benefit crab set."

Corporation and individuals alike‚ Japan is getting back on its feet‚ ready to shake off recent economic woes. Korea and the rest of the world should join Japan in its race to recovery.
Song Ji-hyun for Arirang News.
Reporter : songpd@arirangtv.com

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