Pandemic set to tip Japan into deep recession this year

Despite what they claim Japan’s economy has been in recession for the last 15 years. Decreasing salaries, short-term working contracts and an ever increasing cost of living. This virus will definitely test the metal of the Japanese economists who constantly proclaim Japan is a rich country. Let’s see how lenient they become with mortgages, rentals and city tax when the poop really hits the fan.

If it wasn't the pandemic, it would have been something else. This economic collapse has been waiting to flare up, just needed a match. It's anybody's guess how the world will look on the other side of this. It's gonna be a tough few years.

This is going to be where the middle-class mostly disappears. The rich will take care of each other. Your average Joe Tanaka is going to lose a LOT, and debt is going to skyrocket if the government doesn't immediately freeze loan payments, rent, and other payments.

Yup, and if the infection rate continues as long as people are going about their daily routines and not having a unified and mandatory lockdown, it’ll probably be a lot worse financially, economically and medically it will be a disaster.

This is going to be where the middle-class mostly disappears. The rich will take care of each other. Your average Joe Tanaka is going to lose a LOT, and debt is going to skyrocket if the government doesn't immediately freeze loan payments, rent, and other payments.

Pandemic set to tip Japan, Italy, Spain, USA, UK, France into deep recession this year

If the world cannot survive 6 months economical lethargy, the system need some adjustments to say the least.

test the metal

I don’t need a test to tell me it's badly fatigued.

Now the Japanese government gets to buy even more company stocks and the average Japanese trying to make an honest living gets?

@comanteer

This economic collapse has been waiting to flare up, just needed a match.

Um, no. This virus has destroyed ALL the economies where it has spread, regardless of those economies' pre-virus strengths/weaknesses and other factors. It's all about the virus.

@theResident

That's Socialism/Communism at the end of the day. Proven not to work 

Actually, it's capitalism that is currently being "proven not to work." Socialism is effectively keeping the capitalist systems from collapsing completely. Here in Japan, for example, the government, through preferred share purchases, is currently acquiring stakes in the nation's major private corporations - to prevent them from collapsing.

Just as an example, high frequency trading (nanosecond) is an insane insult to the ones creating the value.

theResident - Sadly - out Grandchildren willl be paying this off 

They said the same thing a generation ago and the hole has just gotten deeper and deeper.

Even if they tripled the pledged assistance, assuredly they’d manage to make a meal of it. To ensure that as few people as possible qualify and outdoing even themselves in hypocritical parsimony, they’ve taken cynicism to the next level and restricted it to households, thereby knowingly excluding millions of deserving individuals who elsewhere would not have had to put up with such a charade but could rightly have expected some unbegrudged financial help. All we seemingly have to look forward to however is more of the same old tired cliches that better days await; they neglect of course to mention that it’ll happen only when the recovery has kicked in elsewhere.

Yup, same with every other country.

Well thankfully the Olympics' preparation will continue and help Japan a lot. Then after that hopefully things will get somewhat back to normal.

Huh? If the preparations werent complete by now, the Olympics would never have been gone off as scheduled.

The only real preparation that needs to be done is rescheduling of venues, reticketing, advertising and other administrative functions. The real money has already been spent!

why is ANYBODY there? All the stores are closed go home!

because of an illness that will have been responsible for a fraction of the influenza deaths.

Since the first case of influenza in the world thought history ? Because if you are to compare by year, that doesn't seems to be going that way.

Italia

https://www.istat.it/it/files//2014/12/Leading-causes-of-death.pdf

https://www.ijidonline.com/article/S1201-9712(19)30328-5/fulltext

Cruise ship

https://www.answers.com/Q/On_average_how_many_people_die_on_cruise_ships_per_year

Any other question about why nobody understand why some people are still going around about flu ?

Sadly - out Grandchildren willl be paying this off - and beyond.

I don't think that's likely. For one, it's impossible to pay off this crushing debt, future generations would revolt. I think a total debt reset is likely at some point, since nobody will be able to pay off anything. For countries with external debt, that will create some friction with other nations. For countries that hold their debt in their own currency, massive inflation is another way out.

Actually, it's capitalism that is currently being "proven not to work." Socialism is effectively keeping the capitalist systems from collapsing completely. Here in Japan, for example, the government, through preferred share purchases, is currently acquiring stakes in the nation's major private corporations - to prevent them from collapsing

Not correct. Capitalism has never been given a chance. What you have is socialism for big business and government corruption that keeps no longer viable companies in business - at the expense of all small businesses, taxpayers and real entrepreneurs. I assume you have read Schumpeter. Unless the deadwood (corrupt zombie corporations that depend on taxpayer's money to survive) is cleared, the forest cannot grow. It is immoral and economic death to support corporations the way you praise here. It will all come tumbling down anyway at some point. If it's allowed to happen in a free market, there will be other jobs available the employees of failed companies. Under your big money "socialism" there will be nothing but government handouts between them and homelessness. And eventually there will not be enough working taxpayers to pay for those handouts.

"not this half-fast nonsense they're doing now."

Half-fast? OK, since you are the expert.

The recession will do vastly more damage than the "pandemic". It already is...

That recession will last a lot longer and get a lot deeper, if they don't bite the bullet, call a real state of emergency, and do an actual lockdown, not this half-fast nonsense they're doing now. Yeah. It'll hurt. But, it'll hurt for a much shorter period of time than if they don't.

Sadly - out Grandchildren willl be paying this off - and beyond. Its very easy to say that there needs to be rent freezes/house loan freezes/consumption cuts tax cute etc, but much harder to do on reality past a 3 month window. Smith - you are right, the average Joe Tanaka in 50% of cases will lose a lot. Mr.Average lost a lot in 1928/post WW2/1997/2008 and will do again. It's an historical event - but if it hadn't have been this it would have been something else. I may well lose my job, you may well lose yours. Put the Virus and the mistakes almost all Governments have made this year regarding the Virus aside for a moment and stop to think about the abilities of Central Banks and Governments to bail us out now. It's much greater than it was in 1997, and MUCH greater than it was in 2008 . They print (electronic) money - they issue more Bonds in greater amounts , over longer maturities for the rest of our lifetime and beyond. Its a constant - the days of excess for the moment are gone. But we WILL survive but it won't be in your world where the Government has to pick up all the pieces. Thats Socialism/Communism at the end of the day. Proven not to work and we are unlikely to see the world return to it. Lets not forget that various European countries have flirted woth it over the last decade..and have all shunned it after seeing what it might not look like - and an example being Jeremy Corbyn being destroyed at the last UK election when the general populace finally saw through him and what his policies would have bought.

This is going to be be a very tough, long, long road to any kind of economic recovery and yes, it will be every man for himself. Smith - The world has rejected your answers to it over and over again - and it will again.

As long as Japan keeps buying its own debt, a deep recession is nothing to worry about.

"setting Japan on course for a deep..." DEPRESSION. Recession is already well underway and will only worsen because of an illness that will have been responsible for a fraction of the influenza deaths.