Here is a reform in Japan that may well have some impact
Reports the Nikkei:
- The Fair Trade Commission and the Small and Medium Enterprise Agency will issue a directive requiring large enterprises to pay subcontractors in cash
- Rather than in promissory notes (The maximum time allowed until the notes are cashed will be slashed from the current 120 days to 60. Such notes are also cashed at a discount if taken to a bank before their scheduled payment dates, and in some cases, subcontractors end up footing that bill)
- The government will also discourage big manufacturers from demanding across-the board price cuts.
- The aim is to make it easier for small and midsize enterprises to manage their capital and thus raise wages
- This is the first major policy change regarding subcontractor payments in 50 years
(ps. bolding above is mine ... this is the point of the reform, the administration wants wages to rise which hopefully then encourages more consumer spending)
