politics

Cabinet approves Y3.5 tril economic stimulus plan

28 Comments
By ELAINE KURTENBACH

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28 Comments
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The best approach to dealing with the problems of the localities has been, is, and will be to empower the localities to deal with their issues as they see fit. This would mean disempowering the central government with its increasingly inept and corrupt bureaucracy.

If local politics were truly empowered, it would permit the rise of competition of different local interest groups, including the long absent civil society organizations, and erode at least some of the "family business" political dynasties which continue to thrive because at the central level they decide who gets what. That would include construction contractors who build the bridges to nowhere and the abandoned gymnasia and cultural centers.

3 ( +6 / -3 )

Incredibly short-sighted.

Population falling but still under the false impression that Japan's econemy should be growing. Stuck in the 20th century - egos of the establishments competing to see who has the biggest economy/GDP growth.

And for Japan in particular - spending money they haven't got. No policcies that prioritise quality of life or sustainable development.

Shameful!

11 ( +12 / -1 )

The debt is at something like 8 million yen per person, I wonder how much this will add on to the bill? Wish I could run my house like Abe runs this country.....naw if I did I would be in jail.

There's a thought...Abe...jail....hmmmm!

14 ( +14 / -0 )

Abe...jail? Yubaru, that made my morning!

8 ( +8 / -0 )

This would not have been necessary if not for the consumption tax hike.

1 ( +2 / -1 )

liarsandfools,

Don't know who gave you a minus - what you say makes perfect sense. Allow local communities to develop and you develop the nation with it. Much better than a police state where the 1% live in luxury and the rest are on the poverty line.

The only ones who would disagree with this are those in the 1%, those in its pay and the ultra gullible. Of which there are not a few.

0 ( +4 / -4 )

(Sarcasm here) Thanking Abe for my great-great-grandchildren, who will have to shoulder this debt!

1 ( +1 / -0 )

Do they really think that "shopping vouchers" are the best way stimulate the economy? That's a plan my daughter could have come with..

7 ( +7 / -0 )

Japan’s cabinet approved 3.5 trillion yen in fresh economic stimulus measures on Saturday for the ailing economy,

Another 3.5 trillion yen p*ssed away. But, when your debt is already at 250% of GDP, what's another lousy 3.5 trillion yen anyway?

It also lays out Abe’s vision for countering longer term trends such as Japan’s surging public debt and a declining and aging population.

That should not be all that encouraging, since his "vision" for Abenomics, especially the third arrow, has fallen way short of expectations. One could argue that all Abe is doing at this point is re-arranging the deck chairs, since Japan's best days from an economic standpoint are clearly well behind it, and all it can do is manage itself into a sustaining level.

0 ( +4 / -4 )

Do they really think that "shopping vouchers" are the best way stimulate the economy? That's a plan my daughter could have come with..

If you know a little about the history of this ploy the government here has done that in the past to try to "force" people into spending money. I know, I know, it's a ponzi scheme, but like with what the LDP has historically done, they figure if it worked once, excuse me twice actually, but the second time it was cash, that the third time's the charm.

Just goes to prove that the Abe administration and the LDP are using 1970's, 80's and 90's ways of thinking to rejuvenate the economy. These folks have run this country into the ground and under, and what amazes me even more is that the general public seems to be so apathetic to the situation. The entire country needs a "binta" (a slap to the face) to wake up.

3 ( +5 / -2 )

I totally agree with a Yubaru and idf66 about Abe and his policies. He and the LDP are trotting out the same out-dated policies that "worked" in an era when the population was growing, people were spending and the economy was expanding. If this continues, it'll possibly bankrupt the country unless the people wake up and smell the coffee.

1 ( +2 / -1 )

Does this mean that the yen will further depreciate?

2 ( +2 / -0 )

Overall, this beefed up economic stimulus plan may have positive effects on Japan’s future.

For instance, the budgeted potion in this stimulus plan to spend on growing local economy would be definitely worthwhile, but the amount allocated, comparing with other earmarked programs, seems seriously inadequate. Once again, Japan’s politicians including Abe are somehow shortsighted; they care about voting blocs than anything else. smh!

-6 ( +0 / -6 )

This stimulus had better stimulate my salary, otherwise I won't be able to spend more to stimulate the economy.

1 ( +1 / -0 )

KEPCO president Makoto Yagi is lobbying METI for hikes in energy bills for businesses by an average of 13.93%. That subsidy is going to be spread thinly.

Abe san will have to confront effectively the failed economic legacy inherited from former DPJ as well as LDP administrations that shamefully ignored the harsh realities of borrowing instead of balancing the countries finances. Abe san will have to be totally forthright in how this is going to be achieved. It is clear current policy will not satisfy concerns that progress in reforms to sectors in economy are not proceeding fast enough and on many instances not at all.

0 ( +0 / -0 )

Stupid beyond belief, what a fool! This is all the ldp have done for DECADES, print money & give it to their friends, rack up the debt some more, scratch heads when it doesn't work, then do it AGAIN & AGAIN WTF!

Its time to let what I call false economies that depend purely on pork barrel spending to DIE & THEN Japan needs to consolidate & promote economies that don't need PORK! That will survive on their own, anything else is just pi$$ing into the wind!

But as we all know there never was a 3rd arrow I have head of this mystical beast for over 2decades & its like a unicorn, no one has ever seen a "third arrow".............it doesn't exist.

The rot continues unabated, 2015 might even be worse than 2014 what a nightmare Japan has become!

4 ( +4 / -0 )

Abe san will have to confront effectively the failed economic legacy inherited from former DPJ as well as LDP administrations that shamefully ignored the harsh realities of borrowing instead of balancing the countries finances.

Little if any blame should be placed on the DPJ, they inherited a colossus mess from decades of LDP management. To add their name to the list is in reality not fair. Roughly 4 years out of 70, so maybe they bear what 3% of the blame?

Pointing fingers does nothing. Abe will have to confront nothing, it's the people who follow him that will. The public will get ticked off at the LDP, vote in the DPJ or someone else, who will inherit the LDP mess, be unable to change anything, and the public will bring the LDP back.

A vicious cycle.

3 ( +3 / -0 )

....none of which will filter down to the common man and woman.

0 ( +2 / -2 )

JT telling abe in polite language to to do acts to himself that he does to the country is appropriate. You are just as bad as the new secrets law, but you just dont realize it. Abe is screwing the country and you are assisting by not allowing free flow of honest opinions and comments. I am quite sure this will be deleted, but at least you will read it. Wont make a difference but MAYBE you will learn.

1 ( +1 / -0 )

"Stupid is as Stupid does". That summarizes Abe's stimulating policies. His supporters ought to wear a shirt or pol button "I'm with STUPID - - > Abe"

1 ( +1 / -0 )

Many developing countries have already done this stimulus plan. They cut interest rate, put budget on infrastructure like industrial estate for foreign investor, roads, upgrading old system to enhance efficiency, more spending on necessities, less borrowing, buying up more troubled companies to prevent closure and etc.

0 ( +0 / -0 )

Yet another article claiming Japan's finances are "precarious", the public debt is "massive", "reforms" are being blocked by "vested interests", monetary stimulus has been "aggressive", growth is being "nurtured" through inflation, and old pork barrel tactics "failed in the past". All quite scary, which is of course the intention, the goal being to scare the turkeys into voting for Christmas. And all of it is completely bogus and fraudulent. The size of Japan's public debt is totally irrelevant, a fake issue used to push through even more bogus "solutions" that will run down the economy even further, while benefiting only the self-appointed few. The Japanese yen is created when the government spends or banks make a loan, and the net private savings in yen is spending minus taxation. Which equals exactly the government debt (aka corporate welfare), and if you don't like government debt you are more than welcome to give back your share of it. Claiming the Japanese government has a debt problem in the currency that it issues is no different from claiming the world is flat or the sun goes around the earth. Future generations will look back at this generation of idiots with our Dark Ages level of understanding of kindergarten level concepts with their jaws on the floor.

-3 ( +1 / -4 )

Hi Yubaru that's definition of pass the economic parcel in any modern democratic system. When the music stops and the money finally runs out, then and only then will government take action. Europe is finding this out in exactly the same painful manner.

1 ( +1 / -0 )

The latest year on year earnings, adjusted for inflation, fell 4.3%, personal savings are negative 1.3%, and household spending is negative 2.5%, a trend that will not boost demand and prices. On the other hand firms savings are up by 12% at a whopping $1.96 trillion, yet firms don't want to raise salaries until domestic consumption shows signs of increasing!! The solution is screaming at us, but I guess Abe is afraid of upsetting his political donors so doesn't increase tax on firms profits in favour of reducing individual tax ...

It would be better not to have such a whopping sovereign debt. As the population ages, the Government will need to spend more on pensions and healthcare, and traditional JGB buyers like pension funds will be spending on pensions rather than JGB's. Also, a few years down the line, sovereign debt will exceed total household savings. So at some point, it may become necessary to borrow from the international money market. Where the marginal buyers of JGBs are foreign investors rather than domestic Japanese investors, interest rates may increase, perhaps significantly. Even at current low interest rates, Japan spends around 25-30% of its tax revenues on interest payments. At borrowing costs of 2.50% to 3.50% per annum, two to three times current rates, Japan’s interest payments will be an unsustainable proportion of tax receipts. The J Government has a few trillion dollars worth of overseas assets it can sell, and attempts to create inflation could help postpone what is beginning to look like a looming bankruptcy crisis!! ...

2 ( +2 / -0 )

Oh dear ! Mr Abe spending again, as much as I like him I don't know where he's got this idea from from that if he chucks loads of money at things it will stimulate the economy, good idea but it won't work, other countries have tried this and non of them have worked, the way the UK has done it is to make massive cutbacks in national and local governments, stop buying military hard wear (we've mothballed two new war ships) cut back in reducing the armed forces air and navy. It has worked for us, I just can't see but spending more and more when the deficit will only get bigger, rather then reducing it. but good luck to him if it works

1 ( +1 / -0 )

Repeating the same failed action over and over, expecting a different result.... is that not one definition of insanity?

1 ( +1 / -0 )

@ itsonlyrocknroll, sadly Japan will not learn lessons from other countries mistakes and will go on their own path to destruction.

It is so sad too as their is so much to like and admire about Japan. It's the government that sucks.

1 ( +1 / -0 )

nom nom nom nom....more easy money. So tasty.....

Seriously though, there is no point in even arguing or discussing about this, since you guys know this isn't going to stop. They are going to keep pumping more and more into the economy. Sound finance and common sense are not a part of this global economy anymore.

Just accept it, make as much as you can now, and buy up other real assets / investments with the earnings you get from your portfolios.

And lastly, even if everything goes to hell, you won't see Japanese people rioting, looting, and killing one another, so being in Japan, is still safer than anywhere else during an economic meltdown.

0 ( +1 / -1 )

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