politics

Japan to boost stimulus to ¥117 tril due to cash payouts to ease virus pain

28 Comments
By Takaya Yamaguchi

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¥100,000 Helicopter money for all for every month on partial lockdown? Let’s go!

10 ( +11 / -1 )

It's a vast amount of money, even in a country that has been kept afloat by stimulus packages over the past 20+ years.

10 ( +11 / -1 )

The revised plan will certainly be easier to administer. Imagine what a bureaucratic nightmare the original plan would have been to implement? I can only imagine how painful the application process would have been.

3 ( +5 / -2 )

I wonder about the costs of unemployment benefits. That is really going to blow the lid on the stimulus gig.

1 ( +4 / -3 )

 but pressure has mounted on Abe to boost the help with a payment of 100,000 yen for every citizen.

I am not convinced by this. I would have preferred that they consider lowering some taxes (car related, municipalities tax, income tax, property tax, etc) instead of going for a cash payment which is not really useful. There isn't such thing as a free launch. We will have to pay this back anyway.

And a major issue is that people who continue to earn comfortable salaries will get that, it does not make sense. Acting on taxes would allow to avoid that and have people still earning a lot pay more than the others. But I guess intelligence is not something that I should except from the Japanese government.

8 ( +15 / -7 )

Capitalism needs socialism to survive.

4 ( +8 / -4 )

diatonic- hak you raise some prevelant points. It does seem that money's are there working or not. It's finally now (pandemic) people fill there time for rewards. Really don't need politians, just eat , get basics.

1 ( +1 / -0 )

Waiting for my portion of the pie. Question is when? Talk, talk, talk and more talk yet bills are coming in, rental and mortages are due, utilities due and no job.

7 ( +7 / -0 )

diatonic- hak you raise some prevelant points.

Yeah my point is why for example an oyaji bureaucrat making a lot of money (and doing little work cough cough) should get this money? He will just use it as an extra to spend at a hostess bar.

0 ( +3 / -3 )

Abe is using the word Speed does he mean sloth speed..

2 ( +2 / -0 )

It will be in application form by on-line or going to apply ( not published but probably somewhere close to you) and some people who doesn't want because it's no-need or want to be another way, just do not apply, blink!, easy inquiry answer.

-1 ( +1 / -2 )

Like many others, when I file my Japanese taxes I include my bank account info for direct deposit of my return. Seems like an easy way for the gov to figure out how to "speedily" get these funds into the hands of those that need it.

1 ( +2 / -1 )

Only to every 'citizen' or will other tax paying residents get the stimulus?

0 ( +1 / -1 )

Even foreign hard working people who resides in Japan and paying taxes ???.

0 ( +1 / -1 )

A form will be mailed to all heads of household. Everyone in the household is eligible for the 100,000 yen. You fill out the form and the money is deposited directly into your bank account. The alternative is on-line, using My Number. Lower taxes, that's a typical USA con-job. As for a bureaucrat spending his 100,000 on a 'hostess', nothing wrong with that, it is a viable element of the economy the cash rolls in to someone deserving, performing a job that requires a very certain talent and should, at a minimum, be monetarily rewarded. Point is to provide a modicum of immediate relief to those impacted by the clampdown and such. As for 'paying it back', note it is a bond issue. Japan, like the USA can issue its own currency - and Japan is the largest holder of U.S. Debt, totaling approximately 150,000,000,000 yen. Japan also holds 500,000,000,000 Aus Dollars in debt. A similar amount in Euros. Japan is owed approximately 5,000,000,000 yen, by the IMF. Japan owns almost 25% of the world's debt. Most of Japan's debt 95%, is domestic aka rolling liquidity or quantitative easing. That would construe 10% as outside debt. Don't get your panties in a knot. Especially, foreigners whose 'investment' in Japan is more akin to a carpetbagger, than citizen, let alone member of the community.

3 ( +5 / -2 )

These numbers seem to be getting so big they're mere abstractions, in amounts that will never be paid off. I suppose the one saving grace is that the debt is basically domestically "owned" if that's really possible. When you're printing money out of thin air, is it actually property that can be owned???

And what happens to all that fiat money once the economy recovers, assuming that it ever will? High inflation? Or can the BoJ simply disappear the money as easily as it created it? Lots of questions, but nobody seems able to answer them.

Until my wife and I are a little more confident about the future, we'll be saving some of our payment and using some to pay off the mortgage. Not much will go to stimulating the economy for now.

daito_hakToday  05:33 pm JST

 but pressure has mounted on Abe to boost the help with a payment of 100,000 yen for every citizen.

I am not convinced by this. I would have preferred that they consider lowering some taxes (car related, municipalities tax, income tax, property tax, etc) instead of going for a cash payment which is not really useful. There isn't such thing as a free launch. We will have to pay this back anyway. 

And a major issue is that people who continue to earn comfortable salaries will get that, it does not make sense. Acting on taxes would allow to avoid that and have people still earning a lot pay more than the others. But I guess intelligence is not something that I should except from the Japanese government.

Tend to agree - give it to the people who really need it - mainly people with unstable incomes whose jobs have disappeared, are on hold or whose incomes have taken a hit due to being PT, freelancers, etc. I'm a freelancer and while things are OK for a while, if work doesn't pick up in the next 3-4 months things will be getting pretty tough.

1 ( +2 / -1 )

It makes absolute sense to give everybody this payment. Firstly, it will directly help those struggling without income because of the virus without them being required to provide numerous required proofs of income. Secondly, the money going to those who don't need it will act as a huge stimulus to the economy as it's spent on extras that otherwise could not be bought. And finally, this huge cash injection will kick start inflation, lower the value of the yen and help Japanese exports.

-2 ( +0 / -2 )

Paul14Today  09:42 pm JST

It makes absolute sense to give everybody this payment. Firstly, it will directly help those struggling without income because of the virus without them being required to provide numerous required proofs of income. Secondly, the money going to those who don't need it will act as a huge stimulus to the economy as it's spent on extras that otherwise could not be bought. And finally, this huge cash injection will kick start inflation, lower the value of the yen and help Japanese exports.

Bear in mind that the Japanese tend to be pretty big savers on average, and tend to be more risk-averse than your average Westerner. So I respectfully disagree, and think that people who don't really need the stimulus money will be more likely to save a big chunk of it if they can. I might be wrong, but the J govt has been trying to kick-start inflation for the last 25 years to little avail, and that's when times have been relatively good.

0 ( +1 / -1 )

“Without” Capitalism to fuel socialism, you’re DOA.

-1 ( +2 / -3 )

So in basic terms for those without the IQ, it means not only your children but your childrens children will be indebted to the system well beyond their means , and that is exactly the way the want it.

They could have implemented a simple common sense plan of banning anyone from the infected area in january as every country could have back then, but instead they have implemented part of the over all plan. Which is to enslave you and your offspring even more than we already all are !

Cant you see it yet ?

1 ( +2 / -1 )

Putting out the fire with gasoline as Bowie once sang !

0 ( +1 / -1 )

@Yeah my point is why for example an oyaji bureaucrat making a lot of money (and doing little work cough cough) should get this money? He will just use it as an extra to spend at a hostess bar.

While there may be some truth, the hostess bar does have expenses that go back into the economy in various ways. The hostesses themselves will buy their family members or kids supplies, food or take them out to eat or enjoy a movie with adds money back into the economy. So you see its not all bad at all.

1 ( +1 / -0 )

So in basic terms for those without the IQ, it means not only your children but your childrens children will be indebted to the system well beyond their means , and that is exactly the way the want it.

You clearly haven't noticed that these national debts are rarely, if ever, repaid. Governments simply service the interest on the bonds they sell and often even create more bonds to service that interest. The U.S.A has been doing that for decades now.

Also, governments that have their own currency such as Japan can simply use quantitative easing whereby their own state Bank simply buys back government bonds with money it creates out of thin air. Then, when the government makes interest payments on the bonds it pays itself. The Bank of England successfully used this method to rescue the City of London Banks after the last global financial crisis. So don't worry too much because your children and children's children should be okay for the foreseeable future.

-1 ( +0 / -1 )

Bear in mind that the Japanese tend to be pretty big savers on average, and tend to be more risk-averse than your average Westerner. So I respectfully disagree, and think that people who don't really need the stimulus money will be more likely to save a big chunk of it if they can.

You are absolutely right about older Japanese who already have savings. Most of them will probably bank it, or put it in a shoebox under the bed. However, there are millions of below 30 year old Japanese with no savings who work in low paid jobs and effectively live hand to mouth. Those I know, who despite the virus still have some income have already told me they're planning on spending their 100,000 on a treat for themselves. Clothes, music, food etc.

0 ( +0 / -0 )

"IMF. Japan owns almost 25% of the world's debt. Most of Japan's debt 95%, is domestic aka rolling liquidity or quantitative easing. "

You're wasting yer time mate.

99% of JT "experts" believe Japan is TOTALLY dependent on tourism, even though tourism represents 7.4% of Japan's GDP. Never mind that the same percentage is greater in the UK, France, Germany, South Korea et al.

Again, waste of time speaking to some people.

0 ( +1 / -1 )

In this article posted on Gaijinpot.com, it says that foreigners will receive the stimulus money.

https://blog.gaijinpot.com/yes-foreigners-are-eligible-for-japans-%C2%A5100000-covid-19-stimulus-package/

0 ( +0 / -0 )

Woo! Hoo! Two more washable masks for families to share? Awesome!

0 ( +0 / -0 )

Of the extra bond issuance, some 23.3624 trillion yen will be deficit-covering bonds and the reminder will be used to finance infrastructure spending.

And who will buy this negative producing debt in Japan’s moribund economy?

-1 ( +0 / -1 )

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