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JAPAN NEWS AND DISCUSSION

Aso rejects calls to resign, saying he has to lead Japan out of recession

Politics Jan. 06, 2009 - 04:02PM JST ( 30 )

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30 Comments

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borschtJan. 06, 2009 - 05:47PM JST

Well, it worked so well in the US when the Bush did it, so I can't see why it would fail in a country known for its high rate of personal savings. Unless people save it for a rainy day.
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bakabakaJan. 06, 2009 - 05:53PM JST

the blind leading the blind.....
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DogdogJan. 06, 2009 - 06:24PM JST

I'd prefer we spent it, than the government spent it for us.

I strongly disagree with Aso on most points, but Hatoyama's point that the government knows better than me how to spend my taxes is patronizing and one of the major ills of Japanese politicians who are there to be served by us, rather than the other way around.
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davidattokyoJan. 06, 2009 - 06:38PM JST

borscht, agree with you here, this is just crazy left-wing politics. Japan needs some proper policies.
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some14someJan. 06, 2009 - 07:15PM JST

Well, it worked so well in the US when the Bush did it,

i Guess it was more than what Japan is offering (about US$130 per person). well, if that can stimulate the economy i am willing to accept it :)
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BentoJan. 06, 2009 - 07:19PM JST

a temporary cut in the sales tax, (could be targeted preferentially at Japanese produced) that would result in a 2 trillion yen reduction in the sales tax receipt for the government would be a much more efficient way of stimulating the Japanese economy.Its only my opinion but at least 50% of this stimulus cash will simply be stuck straight into a bank account,which will be no surprise to the bankers who have probably been leading the lobby groups for this secret bank bailout. Will foreigners be eligible for this cash now..or is that yet to be decided?
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davidattokyoJan. 06, 2009 - 07:29PM JST

Bento, I think I heard that foreigners will be eligible under reasonable conditions - eg. you aren't an illegal alien etc.

But administering a 2 tril. yen reduction in the sales tax also sounds like a tough job (not sure).

Long term this place is shot. Germany and the USA are talking about lowering tax, but Japan is having to look at raising consumption tax 3 years from now. That's not giving consumers any confidence. The government needs to come up with a way to use the 2 trill that will make consumers have confidence about their futures. That's when they are going to spend more freely.
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Sammi33Jan. 06, 2009 - 07:29PM JST

wait, Japanese are known for their savings? Then why are there so many people that go straight to the street after losing their jobs, even if they have been working the job with free room and board for 5,10,20 years? Methinks the "stimulation package" will go to some imported LV bags or a yakiniku party.
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herefornowJan. 06, 2009 - 07:41PM JST

Very sad state of affairs here. Aso has no public mandate, since neither he nor his predecessor have been in office while an election for either house was held. But, the LDP is entrenched in the lower house until at least September, so their policies will pretty much be implemented anyway. And Ozawa seems only capable of opposing the LDP, not really leading or proposing anything. Guess the Japanese people have truly got the government they deserve, if you believe that adage.
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Number11Jan. 06, 2009 - 07:48PM JST

All taxpayers will get this token amount of their money back, regardless of nationality. It doesn't really matter and this is just foolishness by Aso. Government can do nothing to stimulate demand or fix any economy. Businesses do that over time in spite of governments.

If the governments and politicians did nothing, closed up shop and went on vacation for six months, it would do more for the economic health of Japan or any country.

It's called a "correction" because that is what it is supposed to do. It's a natural phenomenon of business cycles and limiting or trying to direct a correction by government intervention or printing of money only delays the equilibrium that corrections are supposed to bring.

Imagine that a compressed spring is like an economic condition of stress. You can't help a spring release the collected energy. You have just get out of the way and let it release.

If governments and politicians got out of the way, people would do as they always do - find ways to improve productivity, reduce costs, improve service, create new products, markets or financing at the businesses they work at.
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memyselfIJan. 06, 2009 - 08:04PM JST

Wait a minute. How long has this man been in office ? Let's wait alittle more. Is he really that bad ? I mean, can the situation get worse if remains PM for another 2 years. Even though he is out of touch with reality. I would give the man a chance.
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Triple888Jan. 06, 2009 - 08:05PM JST

I knew this day will come. So who's next in the line up?
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norinrad21Jan. 06, 2009 - 08:10PM JST

I would say we should all be getting in line for food stamps soon
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GWJan. 06, 2009 - 08:12PM JST

Forget this measly Y12,000 per person crap, give me Y20,000,000 & I will at most use 40% on the mortgage the rest I will spend spend spend, you do this for me & watch the economy grow!! Come I dare you Aso
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smithinjapanJan. 06, 2009 - 08:21PM JST

Dogdog: I disagree with you on Hatoyama's point. While the J-government (and not limited to them, of course) has a great way of wasting your money, he is bang on -- if the government has so much to shell out to individual households, the whole 2 trillion should be put towards an area where there is not enough money. Are you not aware that they are going to raise your taxes to cover the costs they don't have? Consumption tax is guaranteed to go up 5%, and I'm willing it goes up 10%, within 2 years, and other taxes will go up to. This two trillion won't be able to defer those increases, necessarily, but they could go towards it.

Of course, for Hatoyama to actually be correct about what he says, the money would need to be monitored (if not handed out to individuals but spent by government). If they decided a new airport or something were in order, well, I'd be 100% in agreement with you.

I doubt very much though that given that cash the families would suddenly go out and buy a bunch of lucky bags; for my part if I got it it would go directly towards a one month national health plan payment... and that would BARELY cover it. That, or I would use it to cover a 10th of my residence tax for a year.
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seeker1Jan. 06, 2009 - 09:47PM JST

Sammi33, the people losing their jobs and forced to move out on the street are contract workers usually paid by the hour. If your hours are cut back, you don't get as much. Some were living off of 30,000 to 50,000 a month. Without a dormitory room, they would've been homeless. I'm sure a lot of them would have loved to have enough money to actually save some. Generally speaking a lot of money in Japan is in savings.

The payoff that Aso is pushing just looks like a way to pay people to vote for the LDP in the next election, but the sad fact is, it ain't enough of a payoff. Won't make a bit of difference to the average person. They should have figured out some kind of income tax reduction. Of course it wouldn't help people who don't pay income tax.
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bamboohatJan. 06, 2009 - 10:02PM JST

If you want to stimulate the economy, you need consistent spending over a long period of time. Six to 12 months. One shot of less than 100,000 yen will do absolutely nothing. People with no savings will spend it on things that got them to the place of no savings, and fiscally responsible people that have a bit of savings will save it. the only real way to stimulate the japanese economy is to increase exports, but the heyday of "made in japan" is coming to a close, as people around the world are looking for cheap, not quality.

Japan is a facing a crisis that few of these politicians understand. It will take completely new thinking, from a completely new generation to fix things. It's gonna be a while.
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borschtJan. 06, 2009 - 10:10PM JST

davidattokyo,

agree with you here, this is just crazy left-wing politics.

The Bush has been called many things in his life but I don't think left-wing crazy has been one of them.

Sammi33,

wait, Japanese are known for their savings?

I don't remember the savings rate off the top of my head, but yes, Japanese are known for saving (Americans are known for going into debt to buy crap they don't need). In fact, the savings of Japanese households financed American debt for years.
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DogdogJan. 06, 2009 - 10:56PM JST

smithinjapan at ......

Good points, never thought of it that way... fair enough... I'm back in my anti-Aso comfort zone.
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bobbafettJan. 07, 2009 - 12:01AM JST

> “I am confident that the ruling party and I can implement effective measures to boost the economy

Yo, Viagra will not cut it.
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sharky1Jan. 07, 2009 - 12:38AM JST

Aso...lead??? What has he been taking? (and can I get some of it?)
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usaexpatJan. 07, 2009 - 12:42AM JST

64,000 yen is pocket change, how much consumer spending is that really going to trigger? The US tried this last year and it was more like $1500 which still didn't work. That said I don't really think that any of the DPJ alternatives much less anyone in the LDP is going to a better or worse job than Aso. The Prime Minister is not going to turn the economy around as it's a global downturn. Even if it was only a slump in Japan the PM doesn't have the power to will the markets to recovery.
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BadseyJan. 07, 2009 - 01:08AM JST

college students that may have a hard time getting a job may need some sort of stimulus and may need to stay in school. These contract workers may need some help thru their companies. Homeless issues.

Everyone else must pull the purse strings tight and buy Japanese. Incentives to buy a house or car might help.

Buying Japanese and saving. Innovation of new products.

strong leadership is needed to provide direction (so people are not clueless about the condition or what to do) >Media awareness<
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DXXJPJan. 07, 2009 - 01:16AM JST

If they would reduce the consuption tax back to 3% for a year, and cut out all the un nessasary people in the gov., wastefull road projects, and so forth then maybe Japan could pull a turn around in a year. This is just throwing good money after bad. The only ones that will see an increase is the pachinco parlors.
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telecasterplayerJan. 07, 2009 - 01:48AM JST

Aso rejects calls to resign, saying he has to lead Japan out of recession

Who's going to lead Japan away from the stagnant, idealess LDP?
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mushroomcloudJan. 07, 2009 - 01:51AM JST

It's regrettable that Japan cannot have stable leadership.
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cwhiteJan. 07, 2009 - 02:14AM JST

I can see a good proportion of the public gambling the money away at pachinko parlors.
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gogogoJan. 07, 2009 - 02:22AM JST

I think Aso just wants to look good by giving out money... why are they pressuring him to resign anyway he just took office?
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HeathenCabinJan. 07, 2009 - 03:16AM JST

Well what have we here? I called the government stupid, idiotic, and everything that it does will fail unless it drastically reduces spending, taxes, regulations, and gets out of the market. SO that means Aso is an idiot. People think that the government needs to spend more, just where does this magical money come from? OH that is right, the government will just print prosperity! NOT.

Keep printing, while robbing everything through taxation and see where that ends up- I am sure Dear Leader Taro Aso knows everything! HE IS DEAR LEADER OF NIPPON!
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GWJan. 07, 2009 - 12:45PM JST

dxxjp

I hear you but the problem the PORK spending has been HUGE for many decades & built up a very substantial false economy where taxes from the cities is just wasted in the country side & if it was cut( Iagree it needs to be cut) it will destroy a lot of the inaka because the J-govt has never invested in things that can once started sustain themselves, most of it is PURE PORK year after year, cut it one year & it ALL goes bust