Japan votes for Stimulus and Tax-hikes instead of Austerity

[Derideo_Te]

http://www.nytimes.com/2013/06/11/business/global/japans-economic-stimulus-gets-its-second-wind.html?_r=0

Japan's 'Abenomics' agenda gets boost from poll victory - World News

TOKYO – A decisive election victory for Japan’s Liberal Democratic Party-led governing coalition has boosted Prime Minister Shinzo Abe’s pro-business economic agenda, popularly known as “Abenomics.”

"We are extremely pleased,” Hiromasa Yonekura, the chairman of Keidanren, one of Japan's largest business associations and the voice of big business in the country, said on Monday. "Now we would like to see the necessary policies to lift Japan out of its deflation and reinvigorate the economy as soon as possible."

Jump-starting Japan’s languishing economy has been Abe’s priority, particularly as economic growth is one of the preconditions for a planned boost to eight percent from five percent. The tax hike is seen as a vital to supporting the nation's pension and social welfare programs, as well as helping lower Japan national debt, which at $10 trillion is the world’s largest.

Sunday's Upper House election result ends a period of political gridlock brought on by a divided parliament, and was seen as a test of the government’s action plan on the economy.

The government has been in favor of increasing the supply of cash - boosting spending through large public works, deregulation and tax breaks.

Even before the election, the markets expressed their approval of Abenomics - Tokyo's stock market has risen by nearly 40 percent in the seven months since he took office. The country’s currency – an important factor in Japan's export-driven economy – has fallen to a five-year low, giving manufacturers a competitive edge.

So Japan has tossed aside gridlock and obstruction and is instead going with tax-hikes and government spending to stimulate the economy.

Going to be interesting to see how this plays out.

Any thoughts?

 

[Avorysuds]

Not really... A bubble will appear wherever Government spends but the economy will stand stagnate everywhere else while debt climbs. Pretty much just like all of Europe and the US... It's one of thoes really predictable outcomes.

 

[Ropey]

http://www.nytimes.com/2013/06/11/business/global/japans-economic-stimulus-gets-its-second-wind.html?_r=0

Japan's 'Abenomics' agenda gets boost from poll victory - World News

TOKYO – A decisive election victory for Japan’s Liberal Democratic Party-led governing coalition has boosted Prime Minister Shinzo Abe’s pro-business economic agenda, popularly known as “Abenomics.”

"We are extremely pleased,” Hiromasa Yonekura, the chairman of Keidanren, one of Japan's largest business associations and the voice of big business in the country, said on Monday. "Now we would like to see the necessary policies to lift Japan out of its deflation and reinvigorate the economy as soon as possible."

Jump-starting Japan’s languishing economy has been Abe’s priority, particularly as economic growth is one of the preconditions for a planned boost to eight percent from five percent. The tax hike is seen as a vital to supporting the nation's pension and social welfare programs, as well as helping lower Japan national debt, which at $10 trillion is the world’s largest.

Sunday's Upper House election result ends a period of political gridlock brought on by a divided parliament, and was seen as a test of the government’s action plan on the economy.

The government has been in favor of increasing the supply of cash - boosting spending through large public works, deregulation and tax breaks.

Even before the election, the markets expressed their approval of Abenomics - Tokyo's stock market has risen by nearly 40 percent in the seven months since he took office. The country’s currency – an important factor in Japan's export-driven economy – has fallen to a five-year low, giving manufacturers a competitive edge.

So Japan has tossed aside gridlock and obstruction and is instead going with tax-hikes and government spending to stimulate the economy.

Going to be interesting to see how this plays out.

Any thoughts?

Japan is following the American example and not the European one. I think it's both smart and interesting.

 

[Derideo_Te]

http://www.nytimes.com/2013/06/11/business/global/japans-economic-stimulus-gets-its-second-wind.html?_r=0

Japan's 'Abenomics' agenda gets boost from poll victory - World News

TOKYO – A decisive election victory for Japan’s Liberal Democratic Party-led governing coalition has boosted Prime Minister Shinzo Abe’s pro-business economic agenda, popularly known as “Abenomics.”

"We are extremely pleased,” Hiromasa Yonekura, the chairman of Keidanren, one of Japan's largest business associations and the voice of big business in the country, said on Monday. "Now we would like to see the necessary policies to lift Japan out of its deflation and reinvigorate the economy as soon as possible."

Jump-starting Japan’s languishing economy has been Abe’s priority, particularly as economic growth is one of the preconditions for a planned boost to eight percent from five percent. The tax hike is seen as a vital to supporting the nation's pension and social welfare programs, as well as helping lower Japan national debt, which at $10 trillion is the world’s largest.

Sunday's Upper House election result ends a period of political gridlock brought on by a divided parliament, and was seen as a test of the government’s action plan on the economy.

The government has been in favor of increasing the supply of cash - boosting spending through large public works, deregulation and tax breaks.

Even before the election, the markets expressed their approval of Abenomics - Tokyo's stock market has risen by nearly 40 percent in the seven months since he took office. The country’s currency – an important factor in Japan's export-driven economy – has fallen to a five-year low, giving manufacturers a competitive edge.

So Japan has tossed aside gridlock and obstruction and is instead going with tax-hikes and government spending to stimulate the economy.

Going to be interesting to see how this plays out.

Any thoughts?

Japan is following the American example and not the European one. I think it's both smart and interesting.

The big difference is the tax-hikes though.

 

[Derideo_Te]

Not really... A bubble will appear wherever Government spends but the economy will stand stagnate everywhere else while debt climbs. Pretty much just like all of Europe and the US... It's one of thoes really predictable outcomes.

But this time they are are going with tax-hikes to pay down that debt. That means that they are addressing all of their major problems at once.

 

[Mad Scientist]

Corporate Tax Breaks
Individual Income Tax Hikes

AND

They recently signed a "Free Not Fair Trade Agreement" with China to send all their jobs over there like we did.

How's that working for America?

 

[Ropey]

http://www.nytimes.com/2013/06/11/business/global/japans-economic-stimulus-gets-its-second-wind.html?_r=0

Japan's 'Abenomics' agenda gets boost from poll victory - World News

So Japan has tossed aside gridlock and obstruction and is instead going with tax-hikes and government spending to stimulate the economy.

Going to be interesting to see how this plays out.

Any thoughts?

Japan is following the American example and not the European one. I think it's both smart and interesting.

The big difference is the tax-hikes though.

Japan is full of people who are willing to pay more to help which is a cultural advantage.

There was no looting after the Tsunami. Japanese came from all over the country and outside of the country to move to the stricken area and help clean.

It's a smart method for their culture. They've just optimized it for Japan.

 

[Vox]

Japan is full of people who are willing to pay more to help which is a cultural advantage.

There was no looting after the Tsunami. Japanese came from all over the country and outside of the country to move to the stricken area and help clean.

It's a smart method for their culture. They've just optimized it for Japan.

Japan is a mono-national country with basically zero immigration.

When Sweden was like that their system of social help was also very reliable and never abused.

The moment multiculturalism starts - the social system which relies on culturally homogenous society is doomed.

 

[RetiredGySgt]

As I recall about 20 or 30 years ago Japan did the same thing and it was a resounding failure.

 

[whitehall]

What is this some radical liberal fantasy world where they create future scenarios out of foreign elections and post it as reality? Let's see what Japan voted for before you post gibberish.

 

[Derideo_Te]

What is this some radical liberal fantasy world where they create future scenarios out of foreign elections and post it as reality? Let's see what Japan voted for before you post gibberish.

Did you read the links?

 

[Toro]

Japan has tried to raise taxes over the past 20+ years, and each time, it has been met with a recession, which caused the government to backtrack and rescind the tax hike. So whether it works now remains to be seen.

However, they have to do something. Japan's budget is a monster. Tax revenues pay for social security, interest payments on the debt and that's it. Everything else is borrowed or financed through selling assets. It's frightening.

All the money printing from the Bank of Japan may help though.

 

[Toro]

Japan is full of people who are willing to pay more to help which is a cultural advantage.

There was no looting after the Tsunami. Japanese came from all over the country and outside of the country to move to the stricken area and help clean.

It's a smart method for their culture. They've just optimized it for Japan.

Japan is a mono-national country with basically zero immigration.

When Sweden was like that their system of social help was also very reliable and never abused.

The moment multiculturalism starts - the social system which relies on culturally homogenous society is doomed.

The mono-national culture is a problem though. Japan has a shrinking and aging population with a massive debt. That means fewer and fewer workers supporting more and more retired people. Japan needs growth to sustain it. A declining population makes it difficult to grow. More immigration would make it easier for Japan to start growing again.