Abe orders economic stimulus measures

Still, Koichi Hamada and Etsuro Honda, two academic economists credited for shaping Abe’s reflationary thinking, argue that Japan’s recovery was still missing critical components such as sustained increases in wages, corporate investment and consumer prices.

so Abe's 3 arrows have missed these three critical components and still wants to go head with tax hike?

Tax increases result in a higher cost of living. Without a concomitant increase in wages, the result will be a poorer population. Can anyone explain why this will not hurt the economy? People with less discretionary income go out to eat less, shop less and tend to stay home. I'd hate to be a small business owner in this climate.

some14some and gaihonjin. You are both correct. These measures will not help the common person but this government is not a out helping people, it is about helping their corporate sponsors. Minimum wage currently sits at about 760 yen/hour. This is an absolute joke in a developed country. These are the people who will suffer the most.

Doing everything but Fukushima it seems

The package also is expected to include payments to lower-income people

i sure hope they are not going to hand out cash...what they have to do is find a way to get companies to raise salaries instead of keeping the money they make for themselves. without corresponding raises, raising taxes will kill spending.

Abe's Keynesian fantasy again. Break windows to increase GDP. Moron.

Abe still thinks the increased revenue from Japan's export companies, achieved by yen manipulation, will make up for tax increases in the domestic economy. Abe has a very lucky man so far. He is benefitting from an improvement in the world economy, recovery from Fukushima and now the Olympic bid, but this has little to do with his economic policies. Will domestic companies really pass on higher profits achieved by changes to corporate tax rates (which are too high here) to lower paid workers? Meanwhile the real problems Japan faces, which include aging population, declining birthrate, increased health costs, bust pension system and debt at around 250% GDP are not being addressed. Neither is it being explained how a population being hit by tax increases and inflation will be able to increase domestic spending if their salaries don't rise. Families I know here are getting ready to tighten their belts even further.

More words and more liquidity but nothing else so far.

The only way to save the economy would be the scrap the pension system.

Please explain to me how this will increase disposable income for families. A two percent increase in sales tax means a five percent increase in the cost of living. The planned five percent increase will result in a fifteen percent increase in the cost of living. Robin Hood took from the rich and gave to the poor. This guy is doing the opposite, so his name should be Robin Bastard!

Abe orders economic stimulus? Since when did Japan become a communist / centrally planned economy?

If the tax increase were reslly going to improve things in Japan, no "stimulus" would be necessary. I wonder why instead of using the word "stimulus", they simply don't tell the truth and say " we are going to borrow even more money that we don't have to pay for more things which we can't afford".

Since when did Japan become a communist / centrally planned economy?

Stimulus is not central planning, and there is not an industrialized country on earth that does not resort to fiscal and monetary means to adjust economic growth. Long story short: In the long run, we are not all dead communists.

Don't think the man knows what he's doing...even if it's second time around...

" The economy has improved smartly since Abe came to office in December on a platform of fiscal stimulus, monetary easing and growth-promotion measures, but the rebound remains fragile."

Exports have improved on currency manipulation. Banks have benefited likewise. Taro Suzuki, however, has and will only get the short end of the stick. It's gonna get better.

So let me get this straight - Abe originally ordered the stimuls to kick start the economy and now that it has apparently happened he is going to institute a tax hike, that will essentially slow down the economy again - but will issue another round of stimulus to boost the economy which is supposed to counter this tax raise which will then probably lead to another tax hike (or interest rate hike) which will slow down the economy again.... the dog is certainly chasing his tail here

This is smoke and mirrors for class warfare that shifts capital to the wealthy. Stimulate the economy by feeding easy credit funds to big investors and corporations looking for a quick turnover and then place a tax burden on the middle and lower classes to pay for this. Abe is a quick study in the ways of the US, one of the most unequal and troubled societies in the world.

This is nothing more than more of the same rehashed shenanigans that the BOJ misfits have been foisting since 1987. Explaining Japan's Recession

Mises Daily: Tuesday, November 19, 2002 by Benjamin Powell http://mises.org/daily/1099

They can increase salary by 10 percent!