politics

Renho says 'Abenomics' has stalled

27 Comments
By Linda Sieg and Sumio Ito

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27 Comments
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One economic policy solution is to spend money on individuals

Helicopter money. Same outcome. Some people get money, others don't. Give it to everybody all is does is create inflation. Whoever gets the money first benefits. Whoever gets it last gets boned.

4 ( +5 / -1 )

The fast-talking Renho, known for her trademark white outfits, is one of a handful of women to grab the spotlight recently in Japan’s male-dominated corridors of power.

yes fit for "Tokyo Autumn Collection 2016 !" what it has to do with politics?

-1 ( +4 / -5 )

"stalled"? She is too kind!

11 ( +12 / -1 )

Quite sexist of Thompson Reuters to remark on her clothes, but anyway...

“It has become clear during the past three years that trickle-down policies aiming to enrich exporting firms by engineering a weak yen and fiscal spending focused on public works have reached their limits,” Renho told Reuters in an interview.

This is very important.

The trickle-down policies like fiscal spending only shift wealth from one group to another - they do not grow the pie.

Alas,

“One economic policy solution is to spend money on individuals,” she said.

That's not going to grow the pie, either.

Renho, the mother of 19-year-old twins, is an advocate of policies that support working women and cited easing the financial burden of childrearing as an example.

Regulatory reform and deregulation on the childcare sector would be a more effective way to address the problem. Bloomberg had a good article on this topic a couple of days ago.

7 ( +7 / -0 )

Abenomicis has stalled......She is being overly kind. Rather she tell it like it is.....Abenomics is a failure!

yes fit for "Tokyo Autumn Collection 2016 !" what it has to do with politics?

So politicians aren't allowed to have personal lives? She is an attractive woman in many ways, appealing to the eyes and mind too. I wish more Japanese women would follow her lead and get into the public eye and change things here.

8 ( +10 / -2 )

"that trickle-down policies aiming to enrich exporting firms by engineering a weak yen"

Yeah, that darn "weak yen." Today it's 99 to the dollar. LOL.

-3 ( +4 / -7 )

Japanese companies are holding onto record amounts of cash. So spending on individuals, especially needy ones, makes more sense than giving money to companies. The multiplier will be far greater.

Since Renho is a woman with a career, I hope she revives the old Minshuto policy of shifting the tax/benefits system from supporting housewives (kids entirely optional) through "dependency" to supporting people who are currently raising children. For middle class families with children, its probably swings and roundabouts, but for people in hiseiki employment and the working poor, it would be a huge boost.

5 ( +6 / -1 )

Yeah, that darn "weak yen." Today it's 99 to the dollar.

Indeed the yen has fortunately rebounded since a year ago, but that wasn't for lack of trying to keep it weak on the part of the Japanese central planners.

Renho's point is that the policy prescription of competitive currency devaluation and fiscal spending hasn't resulted in a trickle-down effect. Both policies only make certain people richer at the expense of others.

Japanese policy makers should accept their free floating currency for what it is, and likewise make for a free economy too, through regulatory reforms, deregulation, so that new businesses that aren't predicated on a dirt cheap currency or freebies from the government can sprout forth.

If unshackled, a free economy would see a better mix of business form and fluctuate naturally in response to movements in the currency and other factors. Dynamic new businesses - the unborn Googles of Japan - are what could make Japan's well educated populace richer, not policies of redistribution.

6 ( +7 / -1 )

Abe didn't express "deep remorse" because he actually feels deeply resentful at Japan's defeat in WW2 and seeks to avenge it.

0 ( +0 / -0 )

In my 25 years in Japan there was no darker time than the DPJ's period in office. Horrible policies, actively anti-business platform, antagonizing of every political and trading partner, and in the end, the Earth shook them out of power. I know LDP isn't perfect, but it's all we got.

-16 ( +2 / -18 )

In my 25 years in Japan there was no darker time than the DPJ's period in office. Horrible policies, actively anti-business platform, antagonizing of every political and trading partner, and in the end, the Earth shook them out of power. I know LDP isn't perfect, but it's all we got.

Huh? The DPJ failed because of the aftermath of the earthquake, tsunami, and Fukushima, along with a boat load of promises with it's so-called Manifesto, and let's not forget Hatoyama's approval ratings falling from over 75% to under 20% for the screw up over the promise of removing a base from Okinawa, then being forced to resign (not to mention his alien loving wife)

7 ( +9 / -2 )

Like some comments given above, I, too, was mystified by her use of the word "stalled." Did Abenomics ever really get started? The only thing I have seen so far are the rising prices across the board. Abe-san and his economic cohorts keep saying 2% inflation is their target, yet prices have gone beyond the 2% mark. Instead of the word "stalled" she should have said "failed" ... as in "Abenomics is a failure so far."

4 ( +4 / -0 )

Stalled? Wouldn't something have to be in motion for it to stall? Abenomics has done nothing except increase poverty and the public debt and, put more money in the coffers of corporations at the workers' expense. The economy is worse than it was when he took office and started to recycle his economic ideals of yesteryear. The international and domestic markets Abe's economic plan is based on no longer exist for Japan and with an ageing population, shrinking workforce and inflating public debt Japan is doomed without some innovative economic and governmental policies.

5 ( +5 / -0 )

In my 25 years in Japan there was no darker time than the DPJ's period in office.

On a totally separate note....at least the DJP didn't have Abe leading the country down the toilet. If anything THAT is one huge point in their favor. If you think then was dark, you gotta be blind by today.

6 ( +7 / -1 )

Way to go, Renho! More pay and benefits to nurses, teachers, policemen, working women, etc.

4 ( +5 / -1 )

"Stalled" implies it ever got started to begin with. It never got out of the gates, just as everyone predicted it would not -- except those that have made huge money off it.

Anyway, she sounds like she's got a lot of great ideas that would shake things up a little, which is needed. A proper apology, for starters, for Japan's past atrocities; spending on the public rather than the trickle down BS that never works, and bringing back child-rearing allowances. Japan will NEVER have more babies until that kind of thing, proper facilities for day care, and support are increased... and not just with lip-service, either. And until there are more babies the problems Japan faces now will increase exponentially.

8 ( +9 / -1 )

Today it's 99 to the dollar. LOL.

You are clearly not an economist. LOL. The Yen even at 99 is still vastly undervalued. According to the PPP theory the actual yen value to the dollar is 72 Yen. Here is the link where you can learn about basic economics. http://www.economist.com/content/big-mac-index

1 ( +2 / -1 )

Abenomics in your every day life = Pork barrel money + VAT & price increase + Fly a toy go to jail + Gambling with your pension + constitution reinterpretation + MyNumber + militarization + (soon Casino)

2 ( +2 / -0 )

'Abenomics' has stalled

I can't believe it.

0 ( +2 / -2 )

Has there already been the "She's not a true Japanese!" comments by her opponents? Well, she's already lying by saying Abenomics "stalled". The truth is that it failed, and is failing. But I'm guessing telling the truth won't win you elections in Japan.

-1 ( +0 / -1 )

'Abenomics' has stalled

Yeah, Understatement of the year.

She's a great lady. A part of me wants her to run against Abe, but another part of me is worried that she will get the whole, "she's half chinese!!" crap from the right and try to paint her as the biggest threat to pure Japan. She is very impressive with a lot of good ideas, and from what I've heard she's quite the iron lady too.

-2 ( +1 / -3 )

Aly RustomAUG. 20, 2016 - 12:18PM JST

A part of me wants her to run against Abe, but another part of me is worried that she will get the whole, "she's half chinese!!" crap from the right and try to paint her as the biggest threat to pure Japan.

I don't think some of those old morons in the LDP will be able to stop themselves. It could be a good thing for them to let loose so we can all see what's really going on in their rancid, diseased brains.

2 ( +2 / -0 )

I don't think some of those old morons in the LDP will be able to stop themselves.

Agree 100%.

It could be a good thing for them to let loose so we can all see what's really going on in their rancid, diseased brains.

not sure I want to know mate. might give me nightmares..

-1 ( +1 / -2 )

A proper apology, for starters, for Japan's past atrocities;

What does that have to do with economics? Who decides what is a "proper apology"? Who, other than you and the Chinese communists are unhappy with the apologies that have been made?

spending on the public rather than the trickle down BS that never works

Agreement on this point. Trickle down economics is usually piss on economics.

and bringing back child-rearing allowances.

Can't bring them back because they never went away.

http://jidouteate.com/sinjidouteate1/kingaku.html

Japan will NEVER have more babies until that kind of thing, proper facilities for day care, and support are increased... and not just with lip-service, either.

The evidence from Europe is very mixed on whether state policy can raise the fertility rate. Pushing people out of high density high cost cities might well be more effective.

And until there are more babies the problems Japan faces now will increase exponentially.

Do you know what exponential means?

https://www.quora.com/When-is-it-correct-to-say-something-is-growing-exponentially

Moreover, even if your questionable word usage is allowed, "more babies" is not the only determinant of "the problems Japan now faces." Even if it was, even if the Japanese started reproducing like rabbits tomorrow, that would not do much if anything until more than two decades into the future when those babies were old enough to enter to the work force.

-1 ( +0 / -1 )

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