Gov't speeds up stimulus package as tax hike looms

Picture expired. Prime Minister Shinzo Abe bows after a press conference to announce sales tax hike, at his office in Tokyo, on October 1, 2013 AFP

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  • 9

    avigator

    If you had cancer, and knew you had limited time to live, yet people were willing to lend you money to live in luxury and above your means until you died, would not you be willing to borrow as much as possible withthout any regards for the future? That is what all governments are doing today.

  • 2

    JeffLee

    "If you had cancer, and knew you had limited time to live..."

    Is this an allegory relating to public finance?!? LOL. Japan can "borrow as much as possible" because it's the one who creates the money, and the country and its governments, industries and people are the ones who hold the debt.

    As for your "cancer patient" allegory (LOL, again), if the patient owned his own debts and could legally produce currency, sure, why not? Go ahead and use your own money to increase your own quality of life. A no-brainer.

    Still, Abe's plan to spend and then tax is really stupid.

  • 11

    Edumund Fitzgerald

    This country does not need higher taxes. It needs to root out corruption and pork.

  • 1

    Disillusioned

    This 'stimulus package' is just more smoke and mirrors politics. The poor will get a one-off payment of ¥10,000, the corporations will get further tax cuts and the middle class (the majority of the population) get bugger all, except for a sales tax increase, of course.

  • 4

    CrazyJoe

    Japan does need a shot in the arm. The stimulus package should be followed with further actions, including measures to strengthen Japan's financial system and open and deregulate its economy. The package is important psychologically in Japan, where the government is trying to get consumers to spend rather than save.

  • 3

    Cricky

    The targets would affect roughly 3.4 trillion yen of the spending, which includes construction projects and corporate subsidies.

    There is nothing for "normal" people. People are going to be pushed further into a frugal lifestyle while being told they are special and it's all for the nation. Sadly they will accept that. Think the cancer comparison holds water. National debt continues to skyrocket, Government policy continues to ignore the base problems, head, sand...

  • 2

    wtfjapan

    seriously how is helping J corps going to help the average Taro, the Jgov would be better an handing out shopping vouchers to every family that must be spent within a year and make it illegal to swap them for cash. that would do a lot more for consumption than lining the pockets of J companies.

  • 4

    Strangerland

    More money into the pockets of the rich, faster!

  • 2

    GW

    JLee,

    While its true Japanese primarily own their own debt, I just wonder for how much longer they can pull that off, seems useless j-bonds are getting harder to sell, & if Japan ever needs to look outside for buyer...........well then the interest rates will have to skyrocket compared to the near zero rates the last 10-15yrs which would mean interest payments alone would jump many 100s of percent & then Japan will do a Greece on a much larger scale.


    As for people buying stuff before the hike I bet lots will/are, makes sense for large ca$h layouts for new cars or home/condo type stuff but perhaps less so for stuff of lower costs. Remember those silly "ECO Points" a while back for air cons etc........well my place we needed a new one but not urgently & so while many were out rushing to get a few thousand yen in stupid "ECO Points" I waited a few months after it ended & bought the aircon unit I was looking at for over Y30,000 less then the price while you get those dumb points.

    I suspect for a lot of stuff under Y200,000 that even with the increase there will be savings to be had a few months after the tax increase!!!

  • -2

    thkanner

    all what i can say is: spend your money while you get something for it. dont work to much and enjoy time with that money cos in the future the value of that cash will not be there anymore. and for god sake dont buy government bonds, dont buy stocks and dont put money in bank. enjoy travel, work part time cos the future looks grim. the pension system will fall a part in future and the yen and all other currencies deplode. this financial system like it is now has limited time to survive.enjoy the moment and dont believe this miracle nonsense what media is telling you.

  • 0

    zurcronium

    Avigator,

    You expect the Japanese government to die? It may fail but it will always exist. You can take that to the bank (of Japan).

  • 0

    gogogo

    The targets would affect roughly 3.4 trillion yen of the spending, which includes construction projects and corporate subsidies.

    How does this help ANYONE except the fat cats lining up to take the extra work. They wont pass it down, I can't see how it helps anyone but a select few.

  • 0

    plasticmonkey

    The LDP: raise taxes because they spend too much, then spend some more to offset the tax burden. Makes lots of sense. But of course most people just say shoganai. Pathetic.

  • -1

    Reza Rahman

    They should reduce city tax and health insurance. It's way too expensive. After you turn 40 health insurance gets even more expensive.

  • -2

    fupayme

    More printing pleaseeeee. I want another 35% increase in my portfolio this year, so I can just retire before I'm 40.

  • 0

    kaimycahl

    When i read what Abe is doing I am thinking Obama Clone. Look for the rich to get richer and the poor to become forgotton things will only get worse where people will depend on the government for handouts

  • 0

    Strangerland

    When i read what Abe is doing I am thinking Obama Clone.

    We can only dream. An Obama clone would be the best thing ever for Japan - same as Obama has been the best president in decades for the US. Unfortunately Abe is garbage.

  • -1

    ex-japan-visitor

    Historically, Japan has borrowed at an average of 4% interest. When rates hit 4% again sometime in the future, the J government will have to declare bankruptcy. Rates wont stay below 1% forever.

  • 1

    JeffLee

    "When rates hit 4% again sometime in the future, the J government will have to declare bankruptcy."

    In other words, you're convinced that Japan will run out of the money that it has the sole authority to issue? That should be interesting.

  • -1

    ex-japan-visitor

    Do you realize, Jeff, that currencies have collapsed multiple times throughout human history?

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