Why aren't the Japanese getting raises?

Has one of economics' most basic ideas stopped working in Japan?

A Japanese flag.
(Image credit: Illustrated | y-studio/iStock)

There's something screwy with the Japanese economy.

One of the most fundamental rules in economics is that wages rise as unemployment falls. It's basic supply and demand: If there are more job offers than workers, people have greater leverage to demand raises.

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Jeff Spross

Jeff Spross was the economics and business correspondent at TheWeek.com. He was previously a reporter at ThinkProgress.