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Abe pressed to pay out more cash as coronavirus hits economy

73 Comments
By Leika Kihara

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For who's pocket, I am not seeing any yet. abe masks cost, how much ???.

0 ( +0 / -0 )

rgcivilian

Why doesn't Abe do that same thing and stop funding the do nothing CHO, sorry WHO and give that money to us back.

Agree 100%. Those who want to pay for the CHO aka WHO should do so by themselves. Taxpayers should not be forced to subsisize Chinese Communist Party propaganda.

0 ( +0 / -0 )

This government has the power to print its own money. Therefore it’s literally no problem for Japan to give a reasonable amount of money (eg 300,000) to every adult right away.

The government only has the power to issue bonds, e.g. a promise to repay borrowed money.

Whether the BOJ will hoover up the bonds the government issues is another matter, but yes as of now they appear willing to be complicit in this.

So, this is not giving away money, this is borrowing money from the future taxpayers. The BOJ will have to be repaid later, if it does buy the bonds.

And the creditworthiness of the BOJ being in large part the underpinnings of the value of currency that it issues, should encourage people to not go too wild with ideas about consequence-free helicopter money forever.

Gold is at 40 year highs versus the yen at the moment, this might be related.

1 ( +1 / -0 )

First, every government official needs to take a pay cut of at least 10 percent for this next fiscal year and or two and endure like all the other people who pay their monthly incomes each month. Second, any 100,000 must be for people making 50,000,000 and or under. They need to sacrifice fin

Yes, the government can put money into regular bank accounts you need to apply and provide your banking info if they move forward and provide this money.

0 ( +0 / -0 )

A one-off payment of less than an average salary is not going to do anything. People need on-going financial support. They also need rental assistance and the banks need to look at deferring mortgage, loan and lease payments for the time being. This is only the beginning for Japan. With the ever-increasing rate of new cases daily and the government's reluctance to shutdown Japan Inc. it is going to get much worse for Japan very quickly.

1 ( +2 / -1 )

Before everyone gets their hopes up, the wording is 「国民」, not simply "tax payers", and we know how some places have interpreted that in the past.

0 ( +0 / -0 )

Blah blah blah for how long? Nothing changed and infection still elevating. Too late is born to die!

0 ( +0 / -0 )

Anyone looking for some time of support should check out this link which might pay a minimum amount of 4100 yen a day as compensation..

https://www.mhlw.go.jp/stf/newpage_10231.html

0 ( +0 / -0 )

Or is this vote buying?

2 ( +2 / -0 )

Government officials have ruled out across-the-board payouts, arguing that targeted support to low-income households hit hardest by the outbreak would be a more effective use of taxpayers' money.

Since these are the same "government officials" respponsible for the ridiculous pork barell 2 mask fiasco , they have just about ZERO credibility to argue about "effective use of taxpayer money ".

4 ( +4 / -0 )

Abe has no idea how dirt poor the average Japanese person is.

The Japanese people don't even know how dirt poor they really are. This includes the high income class. The deflationary death spiral makes Japan becoming poorer everyday. The endless QE does not help at all.

4 ( +4 / -0 )

There are many people who don't like to work even when given them the job and same people take advantage during these unfortunate events.

They even prefer extended lockdowns and more such occasion. Somehow they can able to manage their life better heathier way than those actually have good job but with such hectic stress.

-2 ( +1 / -3 )

this should be the first step to universal basic income.

the second step would be a jubilee that resets all debts public and private worldwide with the implementation of GESARA.

it's going to happen sooner or later... now is a good a time as any.

0 ( +1 / -1 )

@JonathanPrin - I don’t think anyone is suggesting ‘give 10 million to every resident every month all the time’. 300,000 must be close to the average monthly salary. That’s a reasonable amount to pay out to everyone once or twice as an absolute emergency - which this is.

Most of the money will be used to pay off regular monthly debts such as mortgages, rents, car loans, credit cards etc. Then a large chunk will go on food, and maybe daycare for kids. Anybody unlucky enough to be stricken down by this virus will also have some income to pay medical bills.

The alternative is to give people nothing and watch people fall into poverty (because the financial institutions and landlords haven’t declared any moratoriums on money owed), become more mentally and physically sick (through the stresses of not having any income), and in many cases die (because people don’t have enough money to buy food, or other essentials).

A government should look after its own people in times of emergency. This government has the power to print its own money. Therefore it’s literally no problem for Japan to give a reasonable amount of money (eg 300,000) to every adult right away.

Instead we have people suggesting that it’s not a good idea because ‘we’d never give 10 million to every person every month always’, and a government just shuffling papers, sucking teeth, and not doing a great deal of anything.

1 ( +2 / -1 )

Thinking a bit more about the potential cash payout(s), unless I’m overlooking something obvious pensions won’t be affected by the current situation, so anyone drawing a pension shouldn’t need to receive a cash payment. Their income hasn’t been affected.

That rules out a big % of the population, so it’s even easier to justify giving 300,000 to every working age adult no strings attached and no means testing necessary.

4 ( +4 / -0 )

I wait to live until Japan undergoes hyperinflation.

How can yen be so strong and getting stronger while demography will send Japan's economic power to the drain sooner or later.

When that happens, world will understand how wrong it is to spend money that you can't reimburse with hard wealth (industry output, natural resources, human power).

Helicopter money : why not give then 10 millions to each resident every month all the time ! If ever there was no effect in the future...

0 ( +2 / -2 )

I would recommend they give the money to everyone as other countries have done.

Also let people decline the payment to be put into some kind of support fund (that is NOT managed by the government) for those who need it.

They keep speaking of this 300,000 yen but it seems very restrictive and few will actually be eligible or actually get it in their hands.

0 ( +0 / -0 )

if it’s given to everyone then those who are not so desperate or needy will go out and spend it

Nah. It's life as usual for those types, I think.

Bottom line is they could give one set of payment to everyone without eligibility requirements ( 100,000 yen each ) and create another handout to the needy people ( 300,000 yen ) with eligibility requirements.

I much prefer giving 500,000 yen each to the needy, and none to those who can survive this situation. My next door neighbour is loaded, no money is required to go there. If we can identify the needy, give only the needy the money.

Let's stimulate the economy once the pandemic has subsided.

1 ( +2 / -1 )

They'll debate and have meetings forever.

Just DO IT!

2 ( +2 / -0 )

save your life before trying to save the tax, nenkin,other useless BS etc...

we are in emergency state , same as WAR.

-3 ( +1 / -4 )

Sensei258:

I've been living/working and paying taxes here for 34 years, but I don't think I'll be seeing any money from the government.

4 ( +4 / -0 )

As others have already said, Japan has a central bank so can therefore print as much money as it wants.

There is literally no excuse for not giving everyone as much as they need to get by. The main voice against printing more money is that it causes inflation. Well the Japanese economy seemingly can’t inflate even when it tries.

Japan’s national debt is already 200% of GDP - what is an extra few % in a time of crisis?

Information about Modern Monetary Theory (MMT) is an interesting read for anyone self isolating with nothing to do!

5 ( +5 / -0 )

Some foreigners are jumping the gun on this. Firstly, the request for ¥100,000 per person was made by the Komeito to PM Abe who will now consider it but its not a done deal. If he accepts then the details will be released.

Last time out in 2009 it was also because of the Komeito Party.

3 ( +3 / -0 )

As noted back in 2009 under Taro Aso , I also got a stimulus. It was to anyone who was a registered resident.

2 ( +2 / -0 )

No law or plan has been made yet, but the assumption would be made is that "citizen" refers to every registered person with a juminhyo. Usually the legal mumbo jumbo gets worked out later.

1 ( +1 / -0 )

Last month’s pay cheque just came through and I already lost ¥60000 this month. Looks like when I get this month I’ll be out ¥140000 because the university start times were delayed again. Already don’t know how I can pay my bills and food at the same time.

PRs need help too. What has the government been doing with my years of tax money?

4 ( +4 / -0 )

Japanese in America will receive the $1,200 Trump check if they have a Social Security number.

Last time out for the 2008, financial crash, foreigners with PR received the ¥10,000 helicopter money.

Rent payments need to be suspended first or it's meaningless.

Most landlords need their rents to live and pay their bills including taxes on the rental properties.

5 ( +5 / -0 )

Japanese society is kind of set up for social distancing to work as people tend to keep themselves to themselves, have little physical contact with others, and wear masks etc.

However, these characteristics make money from the government even more essential and urgent because people generally don’t help each other out so much.

I realise thats a huge generalisation, but a lot of people here only know their neighbors to bow to, would never think of offering to make dinner for an elderly person, and certainly wouldn’t think to offer to look after someone’s kids on the street so the parents could go to work.

Community spirit does exist here, but it’s different. Therefore directly giving money to people who spend it in whatever ways best fits their circumstance is essential.

5 ( +5 / -0 )

Abe and co made stupid decisions by continuing to let the tourists in from the infected area so in all fairness abe and co should be paying everyone out of their own pockets not out of the tax payers pockets.

Abe has truck loads of money as does Aso those two families alone could cover the cost of giving 100,000 to each citizen. They screwed things up they should pay for their blundering.

7 ( +7 / -0 )

Japan is a JIT economy cos they invented this for supply chains. Of course there’s no rainy day fund, that’s why more than half of all employees are on no full-time or zero hours contracts (hand to mouth).

It’s such a well known fact for decades that Japan has the highest debt to GDP ratio, so let’s keep going back to the well, borrow more into the future generations finances to dump it as debt into their lives.

Unfortunately helicopter money to all is the only choice for non-Japanese residents to NOT have their human rights violated or consequently they’ll be a huge exodus of the foreigners that are the underbelly of the economy. If they government chooses otherwise then indirectly this is a huge sign that they probably want this anyway?

早く金を出せ!早くしろってよ

3 ( +3 / -0 )

Hunter JamesToday 09:38 am JST

Money should be paid across the board! My reasons for saying this:

Everyone pays taxes. It’s not fair for hardworking people not to get this.

A good point, but perhaps it is up to the employer to do this rather than the government. However, perhaps the government can create an incentive for employers to do so such as subsidizing the increase or offering tax breaks to businesses.

-1 ( +1 / -2 )

stop funding CHO(WHO) n use the fund for japan n when the crisis is over think again how abt all the gluten for eating tax money (all the politicians)go on fast n atleast contribute their one months salary for relief fund

-2 ( +1 / -3 )

To every citizen? What about every permanent resident with legitimate employment who also pays their taxes?

Doubt it...I read elsewhere that the plan was intended for citizens. This is fairly standard behaviour for governments to restrict recovery to citizens. When I lived in the USA in 2007-2008, there was a recovery rebate given of about $600 which as a foreigner, I was not entitled to...What are you going to do?

0 ( +2 / -2 )

Money should be paid across the board! My reasons for saying this:

Everyone pays taxes. It’s not fair for hardworking people not to get this.

What about our hero doctors, nurses, EMT’s, hospital staff members, supermarket workers, convenient store workers, public transportation workers and many others whose salaries haven’t been affected by the outbreak but they are putting their life on the line by still going to work! They deserve this cash handout!

If other countries can do it then why not Japan ( they always boast of having the 2nd or 3rd largest economy in the world )

The most important factor is that needy people will not spend the money freely and immediately as they will have the fear of running out of cash! They’ll keep the money and continue with the hard lifestyle. So the economy will not benefit in any way! But if it’s given to everyone then those who are not so desperate or needy will go out and spend it quickly thus cushioning the economy to some extent!

Bottom line is they could give one set of payment to everyone without eligibility requirements ( 100,000 yen each ) and create another handout to the needy people ( 300,000 yen ) with eligibility requirements.

10 ( +11 / -1 )

and why is the Yen a safe haven for the world?....How long will this mirage last?

7 ( +8 / -1 )

Abe think he is going to pay his way out of this?

It's not his money. It belongs to the taxpayers.

8 ( +8 / -0 )

Abe think he is going to pay his way out of this?

2 ( +2 / -0 )

Rent payments need to be suspended first or it's meaningless. There is emergency legislation that can be implemented to force landlords to suspend requirements for the payment of rent in the time of crisis. Before handing out any money, the government needs to enact that legislation, or the money will go straight to landlords. All rent/mortgage repayment requirements should be suspended until this crisis is over. In fact, I saw a top lawmaker was arguing this just the other morning. This legislation needs to implemented NOW

8 ( +8 / -0 )

since I am ¥80,000 down this month I will happily take the ¥100,000!

I doubt I will see two masks let alone a one off payment of ¥100,000.

I mean it's easier to get blood out of a stone than get any kind of welfare support in this country!

6 ( +7 / -1 )

There has been a sales tax hike (10%) where is that money?

They already spent that money 25 years ago.

Don't expect to see anything for the extra taxes you pay, it's all to pay down debt accumulated through past overspending.

It should be hard for the politicians to keep getting elected like this, but what do you know...

10 ( +10 / -0 )

A voluntary emergency status is clearly not working, go into any town in Tokyo and it’s business as usual. It needs to be key services and workers only, but most people can’t afford to not work as we won’t be eligible for abe’s ¥300k. If he penny pinches now, it will hurt him in the long term, business cannot proceed until the Chinese virus is stopped. A flat payment of ¥200k to every citizen will keep everyone going and encourage the construction workers at al to stay home..

2 ( +3 / -1 )

@sir_bentley

if you turn to page 216 of the application guide scroll down to paragraph 76, the you look for subsection y. Amendment f. You will find it will refer you to page 216.

Best to avoid confusion.

9 ( +9 / -0 )

The average Japanese has no idea how the government wastes the tax-payers’ money on overseas aid, luxurious living for Japanese diplomats, unneeded military spending, massive patrol ships for the coastguard,wasteful inefficient administrative procedures for just about any day to day activity requiring reams of paper etc

13 ( +14 / -1 )

Mr. Goldfish abe, how will GPIF be now ?

0 ( +0 / -0 )

On Tuesday, Toshihiro Nikai, a top member of Abe's Liberal Democratic Party, called for the government to compile a second supplementary budget to fund a 100,000 yen cash payout to every citizen.

To every citizen? What about every permanent resident with legitimate employment who also pays their taxes?

Sensei258 raises a perfectly good question! I've lived here, worked, paid my taxes, steered away from trouble ('cept for a speeding ticket). Basically a law abiding and honest resident. Do I as well as you reading this also qualify for this "payout"?

14 ( +14 / -0 )

As a business owner I now resent all the taxes i have paid recently and the personal taxes I will have to pay soon when they arrive in the post because the government is refusing to help us now. They are only thinking of giving the 100,000 to everyone and as usual they cant make any decision and will need many many meetings before they make their minds up. Japan is really lacking a leader that can lead and i guess the Japanese people only have themselves to blame for always voting them in regardless of their performance.

12 ( +12 / -0 )

Agree 1000% with the sentiment but:

For Abe to give you any money, he first have to take them from you.

It's a little more subtle than that - he borrows the money first, and then burdens you with commitment to pay the money back in future.

So why not demand the J-govt. take less money from you instead?

That would be a fine thing, but the J-govt was spending 100 trillion yen on 60 trillion yen of tax revenues BEFORE the pandemic crisis, and after it he's gonna spend 120-140 trillion yen on 40(?) trillion yen of tax revenues.

It's not just a tax problem, there is the spending side of the equation too.

So long as the BOJ is printing money to finance this it's possible for it to continue, but what happens when the BOJ decides to stop printing money, is the issue. And printing money to the J-govt's heart's content might not turn out so well either.

People want free money, but they don't wanna pay taxes. They think money grow on trees.

They want the money and for "the rich" (aka "someone else") to pay it.

Every yen spent by the govt. is a yen not spent by somebody else.

If they were able to spend my money in a way that is more beneficial to me than me spending it myself, I'd be OK with that.

When it comes to stuff like policing to protect people and their property, and coronavirus vaccines, I think the government can spend it better than me.

But yeah, I'd like for their to be a debate about whether the government is getting value for the 100 trillion they are spending while racking up massive debts on our backs in the process.

2 ( +3 / -1 )

Stop Humiliating the needy Abe Son, after all this is the tax payers money and NOT yours.

7 ( +7 / -0 )

@commanteer Yep. Unfortunately, I doubt that will happen.

0 ( +0 / -0 )

Abe has no idea how dirt poor the average Japanese person is.

19 ( +20 / -1 )

@IloveCoffee

It should be taught in 5th grade that govt doesn't have any money. Every yen they spend, they first have to take it from the people, thus reducing the money people have in their pockets, the money in the private sector, and the money in private banks which are used to lend to businesses.

Why teach something incorrect to 5th graders? The government spends a lot of money it does not "take" from people through taxes. They borrow against the future by selling government bonds (which is why they want inflation to discount the cost of repayment).

Because of this situation, Modern Monetary Theory is getting more traction, which argues that governments can just print fiat money. Others counter that this will create inflation, but because Japan has a shrinking and greying population, perhaps this shouldn't be a concern. Though there could be global currency valuation issues.

Well, because government financing is rather complex, maybe we need to wait and teach it to 7th graders ;)

6 ( +8 / -2 )

There is no disinfectant alcohol at the train stations for the passengers in Osaka at all. Mr Abe please make put disinfectant alcohol all the train and subway stations and warn the people to use it before entering and leaving the stations..At the stations i everyday hear many times 'Alcohol Shidoku, Alcohol Shodoku' but there is no alcohol at the stores at all.

10 ( +10 / -0 )

Why doesn't Abe do that same thing and stop funding the do nothing CHO, sorry WHO and give that money to us back. We worked for it payed it in taxes and benefits us and our own economy right?

5 ( +8 / -3 )

""Economy minister Yasutoshi Nishimura has said the government was ready to spend more once there was more clarity on the degree of damage the coronavirus was inflicting on companies and households.""

Unbelievable, How much more CLARITY you need Sir?, when people start taking to the streets looting businesses, robing others, burning buildings, or what?

13 ( +13 / -0 )

So why not demand the J-govt. take less money from you instead? People want free money, but they don't wanna pay taxes. They think money grow on trees. So politicians use the printing press to create the money out of thin air, thus killing people's savings, diminishing their purchasing power, and increasing the cost of living. It should be taught in 5th grade that govt doesn't have any money. 

I completely agree. But if the govt causes people to shut down their businesses and lose work, temporary payments to compensate for losses and keep them from going hungry are a good use of money that would be wasted paying off rich political allies otherwise.

Ideally, people will learn that the "government's money" is actually their own money that they work hard to make - and that the government is not giving them almost nothing in return That awareness hasn't arrived yet though. I look forward to the day that taxes are cut by 90% and former government ministers and their crony "capitalists" see the inside of prisons.

13 ( +13 / -0 )

Mr Abe and his government are not even in touch with the average Japanese, people are suffering and struggling daily, I thought that being the 3rd. largest economy I should't be seeing so much suffering. How wrong I was. Other nations are giving away financial aid to all citizens, NO Q asked and NO stupid trip to the city office only to get Humiliated by public office staff.

Direct Deposits like other nations is the least HUMILIATING.

18 ( +18 / -0 )

I was actually surprised to see a commentator on a news magazine point out that out of the 108 trillion yen stimulus only 4 trillion is for relief for indivdual workers and families with of course many complex bureaucratic conditions attached...

12 ( +12 / -0 )

If you ask (or want) people to stay home, then financial assistance is part of the package. Otherwise people will have to continue to go to work and be killed by the virus.

17 ( +18 / -1 )

Abe has to follow someone else's request again?

7 ( +7 / -0 )

Abe: " I hear your words quite well, however, "WE" have to think about it, meet, think again, meet again, consider, meet again, reconsider, meet again ........"

That's what it will look like in the end. Sure I would like to get those Yen 100.000 per person (eh, sorry citizen) but will I see that money? I got my doubts!

14 ( +14 / -0 )

Good. At least some of the LDP politicians are coming to their senses.

-4 ( +4 / -8 )

when I get my car tax in the mail next month, I’m taking it to the ward office and give them two masks as payment.

24 ( +24 / -0 )

since1981Today  07:22 am JST

Here we go again with wording. Pressing, considering, recommending, trying to, hope to. Why can’t Japanese leader just come out and say; the checks will be in your bank by the end of next week, or we have done ......, we have completed .....

I heard/read the words but see no actual action! AND WHERE ARE MY TWO MASKS!

JAPAN invented the placebo Checks. just physiological effects . . .

your checks and masks exist .... in your dream.

11 ( +12 / -1 )

A huge % of workers were already living hand to mouth, now no work no money can't buy food, pay rent. Workers with a mortgage, loan repayments how do you pay with no money? Government gouges everyone with taxes on everything, (obviously not much been spent on hospitals). It's time they gave some back and reviewed their fiscal spending habits. Naaaa let them eat cake! Seems to be the mantra.

13 ( +14 / -1 )

I'll not be taking his money - would rather give it to charity.

This government has no foresight to see beyond getting people to spend money - like it's a golden egg.

No thought to how the money should be spent to attain a better quality of life, fair and just society, and protected environment.

-4 ( +5 / -9 )

Here we go again with wording. Pressing, considering, recommending, trying to, hope to. Why can’t Japanese leader just come out and say; the checks will be in your bank by the end of next week, or we have done ......, we have completed .....

I heard/read the words but see no actual action! AND WHERE ARE MY TWO MASKS!

23 ( +23 / -0 )

@ilovecoffee - I agree with you. There has been a sales tax hike (10%) where is that money? You are taxed when you buy things for you business then taxed again because you own the things you bought then taxed again if you sell or dispose of what you owned. Also the income tax rate is outrageous. I’m taxed 38%! Where is the tax money going?!

Let the people keep their money by reducing the taxes.

12 ( +16 / -4 )

YEAH! Print the money Baby! same situation of Germany before the war...

13 ( +16 / -3 )

Komeito morons strike once again! First it was cutting consumption tax for even the rich, now it’s giving the cash to everybody!

Mine will go straight into the foreign securities investment accounts (or maybe some gold), and what good does that do for Japan’s tax payers, myself included?

5 ( +11 / -6 )

Do people not understand that Abe doesn't have any money? The J-govt. doesn't have any money to give. These are tax payer money. For Abe to give you any money, he first have to take them from you. So why not demand the J-govt. take less money from you instead? People want free money, but they don't wanna pay taxes. They think money grow on trees. So politicians use the printing press to create the money out of thin air, thus killing people's savings, diminishing their purchasing power, and increasing the cost of living. It should be taught in 5th grade that govt doesn't have any money. Every yen they spend, they first have to take it from the people, thus reducing the money people have in their pockets, the money in the private sector, and the money in private banks which are used to lend to businesses. Every yen spent by the govt. is a yen not spent by somebody else.

12 ( +24 / -12 )

Sure they will develop a plan to pay out ¥100,000 to everyone, but it will either come in the form of a post COVID-19 travel voucher, some other ridiculous form or they will make it so difficult to get with numerous requirements and stipulations it’s not even worth it. Even better, everyone will have to cram in together at their local city office and attend some 2-4 hour corona virus awareness class to receive it.

Either way, the banks here aren’t setup for every citizen to receive an electronic payment. The postal service is great but Japan doesn’t do checks. I’m guessing everyone will have to get their cash from a local post office: giving each citizen great potential for contracting this virus.

I don’t to sound pessimistic but the government response to this crisis has been quite disturbing and lack luster.

Stay healthy and safe everyone.

33 ( +37 / -4 )

To every citizen? What about every permanent resident with legitimate employment who also pays their taxes?

53 ( +55 / -2 )

I’ve always wondered what a Japanese 21st century revolution would look like-this ‘may’ be it!

20 ( +21 / -1 )

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