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Big companies in Japan are giving their workers the pay raises they asked for. Some companies are even giving more than what was asked.
Suzuki, Toyota, and Honda, among others, agreed to give raises. Those in the retail and food service are also increasing wages. However, it's still not clear if small and midsize companies will follow suit.
Because wages were low, people were saving more and spending less. Now that many will be receiving a pay raise, it's expected that people will start spending more.
Discussion
Why are companies giving raises now?
How will these raises affect the economy?
In your opinion, will small and midsize companies also give raises? Why or why not?
Would you advise people to spend or save more when they get a pay raise? Why?
If you could implement any changes in your economic policy, what would you change?