Take our user survey and make your voice heard.
politics

Japan enacts record ¥36 tril extra budget to fund economic package

30 Comments

The requested article has expired, and is no longer available. Any related articles, and user comments are shown below.

© KYODO

©2024 GPlusMedia Inc.

30 Comments
Login to comment

@Hito Bito

So "good" that if BOJ lifts its interest rates from...er...zero percent, the economy will crash and burn

Really? Notice how my arguments are backed by things that actually happen?

Your retort is based on things that haven't happened or on mere speculation. Many of those things were predicted by people yourself -- didn't happen, though they were supposed to once public debt got so high. So, yeah, strong argument you got there. LOL.

-1 ( +0 / -1 )

Sorry if I sound harsh, but if you decide to have your own business you should've considered any negative "side-effects" first! If you can't handle the risk, don't start your jig!

Not harsh at all. A reality that is buried in the system now of privatized profits and socialized losses. Business owners say they accepted some "risk" in founding a company as justification for paying staff peanuts but in a downturn expect bailouts from public funds.

0 ( +1 / -1 )

Really hope the cash comes out soon.

Kishida is going to be a legendary PM.

-2 ( +1 / -3 )

what is a trillion yen in normal money terms? Is it a lot?

It’s about two billion meals at McD’s, or two billion cups of Starbucks. Enough for everyone in Japan to eat out for every meal for about two weeks. Or, if we’re frugal and eat at home, enough to feed everyone in Japan for almost two months.

1 ( +1 / -0 )

Nishizawa told his wife he had discovered tape on the door leading to the fire escape the day before the incident and removed it, according to the sources.

I find the above "according to sources" to be questionable. Just as with Japanese salarymen in general, I suspect it is rather rare for doctors to come home from a day's work and relate to their spouse details about what transpired that day at the clinic/hospital.

Furthermore, as a tenant, if tape had actually been stuck on the fire escape, one would think Nishizawa would have judged it to be serious enough to notify the building's management.

So something here doesn't click.

-1 ( +0 / -1 )

what is a trillion yen in normal money terms? Is it a lot?

3 ( +3 / -0 )

Where is the outrage?

Well, it is here. But Kisha Kaikan and Dentsu et al have too much of a grip on the media for you to hear much about it in the press.

3 ( +3 / -0 )

"...its fiscal situation is very, very, very good."

LOL. So "good" that the economy has relied on stimulus packages now for over a decade? So "good" that if BOJ lifts its interest rates from...er...zero percent, the economy will crash and burn. So "good" that it needs even MORE deficit spending? So "good" that the BOJ now owns almost $6.5 TRILLION DOLLARS of paper debt printed by money machines going BRRRRR~ into eternity? An increase of $3 trillion in just three years?

Healthy! LOL. No, a "very, very, very good" fiscal situation would NOT require constant near zero or even minus interest rates, or stimulus packages of any kind. But you already know this. You're just shilling for the stupid policies of debt creation, asset bubble inflation and the povertization of the masses, all in order to satisfy YOUR own selfish, craven interests. Nobody in the bottom 98% will benefit in real, systemic ways, but the top 2%? They've got all the pork they need for years to come. Must be good!

Bubbles always, ALWAYS pop. What goes up, must come down. What happens when you "stimulate"...and get zero stimulation? Any other tricks left in your toolbox? Nah, I didn't think so. So BRRRR~ go the money printers! We'll "borrow" our way back into prosperity!! 300% debt to GDP, here we come!

What could possibly go wrong?

2 ( +4 / -2 )

Working people, 95% of the population and the creator of all wealth, are going to pay for it via inflation. The superrich are going to have to pay 5% more for a carton of milk, loaf of bread and etc but they'll be compensated x ¥1million.

3 ( +4 / -1 )

So a househild can consist of two incomes only if the highest paid is under 9 mil and the other 8.5 mil. So a household can be 17.5 and still be get 100,000 Y relief payment plus vouchers that a pretty will off household. I say enjoy and spend local.

4 ( +4 / -0 )

1.2 trillion yen will be used for the government's handout program of 100,000 yen in cash and vouchers for children aged 18 or younger in households where the primary earner's annual income is less than 9.6 million yen.

This is just crazy. A family dragging in 9 million yen a year doesn’t need to receive 100,000 yen per kid from their fellow tax payers. Especially where those fellow taxpayers may be second tier workers on low salary with no kids.

This is welfare for the rich.

Where is the outrage?

3 ( +4 / -1 )

So all these tax hikes on everything far and wide Abe put in place years ago.

Kishida has the keys to the coffers and thee money box? Hell bent on spending it (all) on his economy starter fluid plan. And going to be distributing to his sheeple. And go on our Merry way to more AEON CC Wan Wan cards and more spending on mediocre products. More Nintendo Wii games, more fashion obsessed brand clothing.

More Prada. More Coach, More the Japanese love for image and self separation and the (look at me I have brands things).

The formula is simple.

More money/More spending.

Economy on turbo boost..

The cause and affect. More tax hikes coming in near distant future folks. That 36.0 trillion yen. Yeah that going to need to be replaced. And do not forget about that.

4 ( +5 / -1 )

Of the total, 18.6 trillion yen is earmarked for measures to curb the virus spread and support medical institutions including 2.0 trillion yen in subsidies to help them secure more beds for COVID-19 patients.

For further promotion of the government's COVID-19 vaccination program and procurement of treatment drugs, 1.3 trillion yen and 601.9 billion yen are set aside, respectively.

2.0 + 1.3 + 0.6 = about 4 trillion, on what sound like sensible expenditures like hospitals and vaccinations during a pandemic. But where is the remaining 14.6 trillion "curb the virus" money going? I know some of it will be in free ventilation upgrades and acrylic partitions for businesses, because the local Chamber of Commerce said there's money available for them. The way the numbers are presented here echoes the child benefit boost, something that comprises a tiny part of the spending but gets all of the attention.

They are doing another round of support for businesses whose sales have dropped, but surely that won't be counted as "curb the virus". If you are incorporated and have sales under 100 million, you can get one million yen.

https://www.chusho.meti.go.jp/koukai/yosan/2021/hosei/jigyo_fukkatsu.pdf

2 ( +3 / -1 )

Increasing the public debt by issuing bonds hold in majority by the Bank of Japan, is the recipe that will always wok on the short term as money is injected into the economy. But those stimulus have always to be redone to be efficient if not followed by real structural reforms.

As of 2021, the Japanese public debt is estimated to be approximately US$13.11 trillion US Dollars (1.4 quadrillion yen), or 266% of GDP, and is the highest of any developed nation. 45% of this debt is held by the Bank of Japan.

The Public Finance Act prohibits the Bank of Japan from buying government bonds directly. Nevertheless, according to the provision, it is allowed to buy when the National Diet approves the bill. These regulations result from reflection that the Bank of Japan brought about violent inflation by their public bond purchases during the period from before to just after the War.

1 ( +2 / -1 )

Congratulations, Japan!

-7 ( +0 / -7 )

GOOD, it's a win win situation, who care how many bonds are issued just keep the economy floating.

-3 ( +1 / -4 )

give every person ¥200k, direct stimulus.....this will be spent directly.

Subsidising private hospitals to secure beds for covid is an absolute scandal.....MAKE then accept covid patients as part of their licence to operate in the country. Private healthcare should be secondary care, not primary. If in times of need private hospitals are required, they should be made to open up for the people.

9 ( +10 / -1 )

I can hear the sizzling of all those up coming steak dinners already, sans masks of course!

8 ( +8 / -0 )

You can smell and hear this picture.

Good job going digital guys.

Keep up the good social distancing.

8 ( +8 / -0 )

Responsibility. Fiscal or otherwise not something these old men understand, mummy can always give them more pocket money. So yes after living a life of excessive money…..why not just spend, not like they are going to get the bill.

6 ( +8 / -2 )

To prop up the pandemic-stricken domestic tourism sector, 268.5 billion yen is allocated to restart the government's Go To Travel subsidy program. The scheme was suspended nationwide in December last year following a spike in new virus cases.

The stimulus checks, in this case to children, are the distraction.

The reality in Japan, like in other nations' pandemic responses, is that this is another massive wealth transfer from the public treasury to business and finance. That was the case for the first stimulus package and all others; with proportional allotment only slightly varying.

Every disaster is an opportunity for the oligopoly to enrich themselves in the name of a disaster response, from 2001 to 2008 to today.

12 ( +13 / -1 )

enacted a record 36.0 trillion yen supplementary budget for fiscal 2021, partially financing the government's latest economic package to get the coronavirus pandemic-hit economy back on a solid recovery path.

Will this package really reach to its goal, any idea about previous packages?

https://www.japantimes.co.jp/news/2021/11/12/business/economy-business/economy-shrinks-kishida/

4 ( +6 / -2 )

putting on the back burner for the time being the restoration of the nation's fiscal health, the worst among advanced economies.

A load of poppycock. Where are the strains on the economy that would provide evidence of poor "fiscal health"? Skyrocketing interest rates? No. Skyrocketing inflation? Definitely no. Debased currency? Nope.

Notice how this article (and all the others like it) doesn't back up its assertion?

The fact Japan can (and always does) issue debt while spending its own sovereign currency with no adverse macro effects is clear evidence - even to the stupidest person - that its fiscal situation is very, very, very good.

-8 ( +8 / -16 )

Would someone please return the guy in the middle his reading glasses? Not funny anymore

6 ( +9 / -3 )

Login to leave a comment

Facebook users

Use your Facebook account to login or register with JapanToday. By doing so, you will also receive an email inviting you to receive our news alerts.

Facebook Connect

Login with your JapanToday account

User registration

Articles, Offers & Useful Resources

A mix of what's trending on our other sites