'Abenomics' faces critical test

Abenomics does not need another test. It is a failure.

It's been weighed and measured and found wanting...fairness for those earning less than 10mil

Cutting overtime pay for white collar workers and eliinating spouse deduction. More nails in the coffin of the Japanese birth rate. No more Japanese in 100 years.

and did not undo the vested interests Abe had promised to scuttle...

the problem is that the vested interest that most needs to be scuttled is the system of government itself. fat chance of that.

After all these years I still cannot believe the citizens of this nation (that can vote) allow the people in power to make obscene amounts of promises without any details as to how they will deliver.

@smithinjapan You mistake Japan for a democracy. It is not. The country bunpkins control the government. Their vote is worth, in the most extreme case, 7 times a city slicker vote. But the country bunpkins are the main support fo the LDP, so you can't expect that to change. In addition to unrepresentative government, there are the bureaucrats who are beholden to nobody.

I am hoping for the best but expecting the worst. Too many vested interests in politics, bureaucracy and big business.

At least he dresses appropriately, like a magician.

Shinzo Abe is one of the most effective politicians in the world. If he can't revive Japan's economy, I'm not sure anyone can. There is certainly no one in government who can match his gravitas and ability to push somewhat radical reforms.

I'm still a believer. He's also got tons of political capital, and no opposition. His reform package looks pretty good, and so far the Japanese economy is doing better in the short-term.

I don't expect immediate successes, but I think this is the beginning of the road to recovery. If its not, we're going to see another string of PMs and political instability that will adversely affect the country...perhaps irreversibly.

“The initial enthusiasm for Abenomics has long since given way to skepticism –- both in the financial markets and with the public at large,” said Marcel Thieliant of Capital Economics.

I wonder what proof he has for this claim considering Abe's government has a 52% and 39% respective approval and disapproval rating according to a recent Yomiuri poll.

Drive anywhere in the countryside and see the signs "No more TPP". The agricultural sector is not going to budge until they're forced to. But as it's stated, they appear to be the ones voting in the leadership.

While studying economics here in Japan, I've notice a few contradictions. They want a higher birthrate, while sending more women to work, and hoping that women will send their children to childcare. Daycare and babysitters are not part of the Japanese culture... so this requires a complete ideological shift. The reality is, this is going to take more time than the declining birthrate has time for. Not to mention tight immigration.

Meanwhile, Abe wants to take away overtime pay for many. A professor explained this in simple terms: Japanese people budget their overtime. Unlike where I come from where overtime means a project is derailed or behind schedule... Japanese firms actually assume there will be massive amounts of overtime and may unofficially state the amount of overtime when signing on new employees.

Therefore, the Japanese workers are making their purchasing decisions based on expected over time pay in addition to their "salary". Take away the overtime, and now you're talking about effecting the real-estate market, luxury goods, and all sorts of other markets that Japanese workers won't be able to afford. "over time" is systematic in Japan. "over time" is just part of one's "salary"

I think Abe's policies could work, but the problem is how Japan literally relies in most cases on a man being a breadwinner with huge amounts of overtime to pay the bills, and if married, his wife will stay at home and raise children. Meanwhile, Japanese elect officials that pass legislation that will limit immigration. To change all this means much BOLDER action and inciting cultural shifts to a more Western style of labor, as the critics have stated.

Abenomics is in CRITICAL CONDITION.

One last point about the birth rate. Now in Japan it is not fashionable among women to get pregnant and have babies. Young women want to have a free lifestyle of play and travel and adventure. It is fashionable to have a cute puppy. And who can blame them really. This is the lifestyle promoted by magazines and mass media generally. What is Abe going to do to change this mindset. Women cannot get above a very low glass ceiling. It would be much better to have first rate women instead of second rate men in positions of importance. For example, prime minister.

There is no critical test, it has been an absolute money grab by the elite class of Japan. Smoke and mirrors to rob the taxpayer. Japan has no future. There is no hope left for the economy of this nation on its current path, other than complete fiscal insolvency.