Impact of Trump's Presidency on Prices
With Trump's inauguration as president, the biggest concern for ordinary Japanese citizens is how prices will be affected. The exchange rate, which directly influences prices, is a major point of anxiety. If the yen continues to weaken and prices keep rising, life will become even more difficult.
Reflecting on Trump's pre-election statements, it's unclear whether the yen will weaken or strengthen. He mentioned aiding American export companies by devaluing the dollar. At the same time, he talked about raising tariffs. Raising tariffs would naturally increase prices, leading to interest rate hikes, which would then strengthen the dollar. It's uncertain which direction things will go.
It's undeniable that prices in Japan are rising, and the increased cost of living is burdening households. Wages seem to be rising as well. Day laborers and short-term part-time workers have seen slight wage increases, likely because employers need to attract workers. While higher wages for part-time workers are good, full-time employees might be struggling. Full-time employees typically have scheduled raises once or twice a year. Gradual price increases might be manageable, but sudden spikes in the cost of rice and utilities, as we're seeing now, make it hard for raises to keep up. This has led to more people taking on side jobs. Many people work as full-time employees during the day and take on part-time jobs in the evening, as I've seen at my part-time job.
The fact that short-term part-time jobs are easily found and can supplement incomes helps households manage their budgets. It might not be the best environment, but having a system that allows for some financial maneuvering is greatly appreciated.