This article presents economist Takeshi Fujimaki’s argument that a weaker yen is the most effective way to protect Japanese jobs. Using clear numerical comparisons—such as the difference between an exchange rate of 1 USD = 80 yen versus 160 yen—Fujimaki demonstrates how a strong yen accelerates industrial hollowing-out by making foreign labor cheaper. He questions why labor authorities, unions, and workers fail to demand yen depreciation, concluding: “Don’t cut people—cut the value of the yen.”

Why don’t the Labor Standards Bureau, labor unions, and workers raise their voices demanding “a weaker yen!”? I have always found it strange.
2012/9/6
First, Takeshi Fujimaki — born in Tokyo in 1950.
After serving as the Tokyo branch manager of Morgan Bank, he is now the head of the investment advisory firm Fujimaki Japan.
His books include Survive the “Great Turbulence” of the World Economy (Asahi Shimbun Publishing), among others.
From his blog’s serialized column at http://www.fujimaki-japan.com/takeshi/, I introduce what is, in my view, the greatest statement he has ever written.
From the September 14 issue of Shukan Asahi.
Boldface in the text is mine.
…Preface and earlier text omitted.
The method is to weaken the yen.
Even if the minimum wage is raised, lowering the value of the yen enables Japanese workers to compete against overseas labor.
Let us suppose the minimum monthly wage for Japanese workers is 100,000 yen.
If the exchange rate is 1 dollar = 80 yen, a foreign worker earning a monthly salary of 1,000 dollars can be hired for 80,000 yen.
For a Japanese employer, hiring a Japanese worker is more expensive than hiring a foreign worker.
Hollowing-out occurs, and Japanese people lose their jobs.
However, if the yen weakens to 1 dollar = 160 yen, hiring a foreign worker who earns 1,000 dollars per month costs 160,000 yen.
Even if Japan raises its minimum monthly wage to 120,000 yen, the job will not go overseas.
Why don’t the Labor Standards Bureau, labor unions, or workers raise their voices demanding “a weaker yen!”? I have always found it strange.
Instead of cutting people’s jobs, cut the value of the yen!