politics

Japan PM tells Brazil 'Abenomics' working, time to do more business

17 Comments

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Fukushima is under control and Abenomics is working, seems like Abe should be a stand-up comedian instead of the PM.

11 ( +15 / -4 )

Inflation spurred by tax hikes doesn't equal economic growth. Abenomics has forced businesses to raise their prices to make up for the extra costs the increased consumption tax imposes.

Inflation, real inflation, comes from increased demand for a limited supply of goods and services. This hasn't happened in a big way in Japan (or many other G10 countries).

Real growth comes from higher employment, rising salaries, and investment: Abenomics functions more as an obstacle to these things, not a facilitator.

13 ( +15 / -2 )

Abenomics is 'working' for investors and bankers in Marunouchi/Otemachi but for us regular folks who don't own much property and our preoccupation is to provide real good and services, it is a tight rope walk with no defined length that's taking us to somewhere we don't what's there.

7 ( +10 / -3 )

“With Japan growing again, we can grow with other nations,” he said in comments to executives translated by an interpreter.

Japan growing? Yes but in national debt only, so no nation would like to join Japan including Brazil whose economy is doing so well.

5 ( +7 / -2 )

Rousseff is the Latino version of Abe: economy can't get worse than this, but she keeps saying that Brazil is a paradise second only to Disneyland. In short: two professional egocentric liars. Well, that's politics after all.

2 ( +5 / -3 )

I see a lot of people slagging of Abe san, well your politicians over the last past 15 year have made a mess of Japans economics, and its been stuck in the doldrums for years with economic stagnation, its about time some one did something compleatly different to change things, lets face it your politicians have been stuck in with there old traditional ways, and its clear they have not worked, give the guy a chance lets see what differace he makes, but its something that can't be done overnight, its going to take years to get better, all that he is doing now is sowing the seed for your and Japans future

-5 ( +5 / -10 )

Brian, you are right. People seems to go against Abe-san for anything, but what those who are criticizing him did to improve Japan? LostNagoya, Roussef was a bank robber in the past, and she support Cuba and other commies. Please stop comparing a graduated guy like Abe-san who is trying to improve Japan economy with this stupid woman. Even brazilian people dont have respect for this jerk woman.

-7 ( +2 / -9 )

Funny, Brazil has tried "Abenomics" in the past, going on spending binges, and then printing money to pay for them, and look where it got them. Abe can learn more from Brazil than Brazil can learn from Abe.

0 ( +5 / -5 )

Yes, stealing from the poor and middle class and giving to the rich is working. Yippeeee!

0 ( +6 / -6 )

And after they stopped laughing, then what did Abe say?

2 ( +2 / -0 )

Abe has been negotiating oil rich countries. Abe does not have a big mouth but I suspect Abe has a big plan to replace uranium depending nuclear energy plant efficiently. Now Brazil which is most developed country in S. America. Looks like Abe is successful in wherever countries he visits and he couldn't care less how he is criticized. He just is not used to bragging.

-1 ( +0 / -1 )

Looks like Abe is successful in wherever countries he visits and he couldn't care less how he is criticized.

Brazil is the nation of second highest Japanese population of the world. It is not like other nations. Many Brazil born Japanese descendant do not buy the theory of Japan is growing again. It is only growing in debt and inflation. Not the real economic strength of high domestic consumption and export boom they have appreciated back in 1970s and 1980s.

If Japan is promising for growth and better opportunities, there will be more children from youth. The reason of declining birth rate is reflecting the lack of confidence from consumers. Japan is the land of setting Sun after third arrow has been shot. There is no more arrow left for Abe for revitalizing the economy again.

-1 ( +0 / -1 )

I think if Abe was pushing new bold and innovative economic policies that the average person could see as benefiting them people might be willing to give him time for his policies to take effect and not criticize him but he is just pushing the same old failed LDP policies of the past. Manipulating the yen rate to benefit exporters, pork barrel spending to benefit LDP friendly construction companies and raising taxes that place additional burdens on the poor and middle class. No reforms such as decreasing the number of diet members which has been talked about for years and no reining in the bureaucrats and their wasteful spending especially on those companies that do nothing but hire retired bureaucrats and waste taxpayers money.

-1 ( +0 / -1 )

With Japan growing again? "Think tanks forecast 7.4% drop in April-June GDP" http://www.japantimes.co.jp/news/2014/08/02/business/economy-business/think-tanks-forecast-7-4-drop-in-april-june-gdp/#.U95J2BzoYeo

0 ( +1 / -1 )

It seems to me that under cover of the consumption tax rise from 5% to 8% last April the government have turned a deliberate blind eye to other price rises.

Weeks before the tax rise supermarkets were making tax exclusive and tax inclusive prices on goods. The tax exclusive price was the big bold price which had risen to the previous tax in price. This was actually before the tax rise. Befoe the tax rise whoever heard of sliced cheese in packs of 7 slices? This is just one item where pre-tax packaging and planning by companies was undertaken to add their own piece of the action. The same price for 7 slices as previously for 8. Cheapo haircuts at the 1000 yen store. Previously 1050 yen tax in now its 1100 yen tax in.

Why isn't anyone complaining about this mis-use of tax increase? of course rising prices will cause inflation which is what the government want the more the merrier. Finally someone realizes that inflation and GDP growth are inseperable.So we now are now trying to conjour up some inflation that only a generation ago Reagan and Thatcher were trying to eliminate. At least the Poly-trick-ians havent changed.

1 ( +1 / -0 )

Abe is a liar, a crook, and crony-despot. Economic morons believe his pack of lies.

1 ( +1 / -0 )

I see a lot of people slagging of Abe san, well your politicians over the last past 15 year have made a mess of Japans economics, and its been stuck in the doldrums for years with economic stagnation, its about time some one did something compleatly different to change things, lets face it your politicians have been stuck in with there old traditional ways, and its clear they have not worked, give the guy a chance lets see what differace he makes, but its something that can't be done overnight, its going to take years to get better, all that he is doing now is sowing the seed for your and Japans future Brian Wheway brings up important points. PM Abe inherited a government deep in debt, and has to deal with it. No question.

However, I think the criticism Abenomics has received has merit. Forget Abe, and just look at the economics of it.

A higher consumption tax means increased costs, which will hit small business, working families, and low/median income individuals the hardest. Consumers aren't going to be spending more money because their incomes are stagnant.

There's nothing about cutting wasteful spending. In fact, Abe wants to build up the military which means deficit spending on a huge scale.

Also, look at what Abenomics aspires to: its proponents estimate that, if successful, Abenomics will lead to 2% growth in 10 to 15 years (that's a quarter of a working person's life). This is not a plan for prosperity, but, at best, mediocrity.

Abenomics also favours large, established corporations. There's no plan to cultivate, or even support an entrepreneurial class (which is way too small in Japan). New business is key to growth.

Tax hikes do not lead to lower debts. European nations have had high taxes for decades yet their debts remain enormous.

The national debt has to be dealt with, but, even moreso, the economy has to be fixed. That means more investment (foreign and domestic), more employment with good wages that grow substantially, more free trade, more consumer spending. Not sales tax hikes.

Japan would be better off keeping the sales tax at 5% (which is very reasonable), and cut wasteful spending, red tape, and taxes on income (higher net salaries would lead to more consumer activity than a tax increase).

The only smart moves PM Abe has made are the cuts to business taxes, and an openness to free trade. These are positive steps, and should be commended.

However, tax hikes, printing money, and deficit spending (all features of Abenomics) are what created Japan's economic woes. So, why should we give policies that have failed another chance?

0 ( +0 / -0 )

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