Better is, if you want an economy to grow, you have to expand its production capacities, i.e. capital. this is done via a savings rate and not via credit-financed government spending programs. the approach that wages must first rise or consumption should grow in order to stimulate the economy is pure Keynesianism and unfortunately that is not how economics works.

TomK

econ

Japan Faces Economic Crossroads as Industrial Output Plummets

Only stronger wage growth and more moderate inflation may boost consumer spending. Plus, Yen as a weak currency is likely to drive export growth. While these factors should collectively improve economic conditions, I expect growth will be relatively modest. Japan should recover in this second half. 