Sunday May 27, 2012

JAPAN NEWS AND DISCUSSION

Noda orders all ministers to attend Friday meeting

Politics Jan. 10, 2012 - 07:10AM JST ( 16 )

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16 Comments

1

OkinawamikeJan. 10, 2012 - 08:50AM JST

Prime Minister Yoshihiko Noda has ordered all members of his cabinet not to miss a meeting on Friday even if they have to cancel their holiday plans,

What holiday plans? Does the government get the whole damn month off? The rest of us Poges are back at work trying to make a living!
1

globalwatcherJan. 10, 2012 - 09:28AM JST

I have said what I meant to say. Nothing more and nothing less.

Yay, he means business. He is giving out pink slips to these two bad apples, maybe more to others who are nothing but burdens.. Good, news. Now the LDP has no more execuses left and they are cornered to go with the tax hike . How on the earth, the LDP is now opposing the tax hike plan that was initially introduced by their own? Tax hike is unavoidable. Face it and Fix it.
3
tkoind2Jan. 10, 2012 - 10:10AM JST
globalwatcher. There is a time for taxes and time when it is boneheaded to raise taxes. In a country with high unemployment, a 17% population living under poverty levels and consumer spending already depressed, raising taxes could well kill off what economic activity there is.

There are several issues here that Noda has failed to address, and until he does, the tax plan is doomed to cause more problems that is solves.
1. The tax plan should exclude food and essentials. This is common sense and practiced in many of the world's most successful areas. Take Washington state in the US. Food and essentials are excluced from sales tax. This reduces the burden upon poor consumers and also encourages no dip in spending for essential items.
2. The tax plan must be coupled with rational and intelligent spending controls. We all know that there is a profound amount of waste in how money is spent in Japan. Without changes to this, to favoritism and corruption, then these new taxes will be equally wasted harming everyone in the process.
New taxes now will likely curb spending in already worried working classes. This leads to greater economic pressures on retailers to cut jobs or close all together. This in turn raises more unemployment and thus more dependency upon public funding. You see the cycle now?

Any plan to raise taxes must be better thought through and considerate of the issues raised above. Otherwise the public will not support it and, if it goes through anyway, it will immediately start to cause considerable economic harm to Japan.

What Japan really needs is a new deal to spend on infrastructure and domestic investment and a plan to import more workers who can shore up the working/tax paying segment of society. Distribution of wealth would also help via greater investment in domestic production and small business. Working tax paying people, Japanese and new immigrants is what is needed.
3

SolarSailsJan. 10, 2012 - 10:51AM JST

I felt good about Noda to hear him cracking the whip on lazy politicians.

Then all those good feelings were blasted away by it being over his desire to raise taxes.

I am sure that more money could be injected into the government by trimming waste, eliminating this country's enormous pork barrels, and throwing out those amakudari seniors.

The people already pay too much in taxes.
0

globalwatcherJan. 10, 2012 - 10:59AM JST

tkoind2Jan. 10, 2012 - 10:10AM JST

I agree with (1) and (2) listed above. Please go back and check my blog records on the tax hike issues. You will be convinced that I am with you on these issues. You and I are on the same page.

1)I go with the tax hike EXCLUDING food and medicine.

2)I go with spending cut and tax reform eliminating tax loophole, spending cut over non performing civil servants, bureaucrats and rual politicians.

I even suggested 100% elimination of government housings for civil servants, politicians, bureaucrats. Why do you spend millions of yen for politicians in Nagatacho housings? Here in US, all US congressmen, senetors and bureaucrats pay for their own housings in Washington unlike Japan. They all recognze it is a previledge to serve for American government and Americans. It is a honor to serve. It is NOT a career with many entitlements as Hashimoto of Osaka suggested on JT today.

All of them listed above have to be done while proposing the tax hike in order to keep a house in order. If nothing are done, you would see a big financial tsuname hitting the shores of Japan within 3-5 years. No longer Japan can afford to wait. I have been advocating this for years with IMF since 10 years ago while I was not blogging on JT.

Also, let me add Japan needs to start examining the corporate tax rate to keep domestic manufacturing industry from going abroad. . Japanese corporate tax is the highest in the world. Set up task teams for an elimination of unfair tax codes (loopholes) for tax reform,You go from there. .
1

paulinusaJan. 10, 2012 - 11:34AM JST

Fascinating that he has to order the ministers to attend. Is attendance usually optional?
0

tkoind2Jan. 10, 2012 - 11:55AM JST

globalwatcher. Then we are close on this issue.

But we have to put the horse in front of the cart. Fix the spending issues first and foremost. At the same time do what is required to attract jobs and investment to Japan. I agree with you here. Especially to bring more companies to Japan and thus more jobs.

Jobs, jobs, jobs is the real answer here for both taxes and avoiding that 3-5year wall. A Japanese "New Deal" is required to put people here to work and to invite more workers from abroad to contribute to the tax paying segment of society.

Do this and add a rational tax as we have agreed, and things may well improve. But tax without the other steps and the economy will just hit that 3-5 year wall even faster.
0

globalwatcherJan. 10, 2012 - 12:37PM JST

tkoind2Jan. 10, 2012 - 11:55AM JST

Agreed everthing you have posted here. The name of the game here is a growth to make a pizza from medium size to larger size, so that everyone gets a bigger slice of the share when it is cut.

At very beginning, I was not all for Noda, but I have been reading all Noda's blogs in the past, and I am convinced he has a cristal ball to take Japan into the a right direction. What you need to do is to support him and be patient with him so that he can throuw a football to the right person to get touch down to score (you know we are in the superball season here in US). Japan needs to start working for the "New Deal" that will take many overhauls in public and private sectors. All it takes is a solid vision and a strong leader who can unit everyone in Japan. The world is looking for a strong leader of Japan as well you are. What you need to do is to avoid a political and a social vacuum at this moment. Critical.
1

tkoind2Jan. 10, 2012 - 12:56PM JST

We do agree on the problem and on much of the solution. The one area I think we are not onboard together with is Noda and his approach. I have much less faith in him. I think his vision is primarily focused upon the tax increase and there is no indication that he is considering the substantial downsides of a tax hike without the exceptions you and I both agree are necessary.

If he achieves this goal, sans changes we suggest, then he will be doing more harm than good and we are back in a sinking boat.

So I think we have to make our support for Noda conditional. And I just do not see the current party leadership taking the necessary steps or even conceptualizing the changes we need to see before a tax hike would become a viable and helpful next step.
0

globalwatcherJan. 10, 2012 - 01:38PM JST

If he achieves this goal, sans changes we suggest, then he will be doing more harm than good and we are back in a sinking boat.

The ship of Japan has been sinking since 20 years ago. If nothing is proposed and done, Japan will continue sinking regardless. This is something IMF and I are talking about. I do not know the current propensity rate of Japanese banking industry that was changed to more risky ratio, and that is also a big issue here. Too many things have to be overhauled. It looks like to me that Japan is having a hard time to catch up with a speed of changes in global economy.
-1

some14someJan. 10, 2012 - 05:27PM JST

Friday the 13th ! Some troubles might not be avoided.
0

Marion Wm SteeleJan. 10, 2012 - 11:44PM JST

*The war that Japan started has been over for 67 years and it is time for Japan to return sovereignty to the Kingdom of the Ryukyu Islands ; which immediately will become Memorial Island and pay homage to the thousands of people that died in that war. - persons who were from China, Korea, theUSA, Russian and even Japan. It is time that both Japan and the Ryukyu Islands become dependent on their own decisions. Work with China and first send all the USA military back to their home base.It seems to me that this fellow Noda is going to be a solid leader for the Japanese people.

We are facing financial problems and all the woold will have to work together and thoughful leadership will be needed in all counties - all over this world. I feel you have a winner in Noda.
1

JohnBeckerJan. 11, 2012 - 01:58AM JST

Instead of raising taxes, how about selling government bonds, with 5% interest, to individual Japanese citizens only? (No banks, no foreign investors.) Use the money exclusively for tsunami recovery (NOT for TEPCO). With that kind of interest, people will clamor for them. The debt will remain domestic. It'll raise the money needed for cleanup, housing, etc.

This is just a half-baked idea that I came up with in 5 minutes. I'm sure it's full of holes. But it seems like this is more the direction the J-gov should go.
1

MaboDofuIsSpicyJan. 11, 2012 - 03:38PM JST

@globalwatcher

Here in US, all US congressmen, senators and bureaucrats pay for their own housings in Washington unlike Japan.

And they also have a very very special health and life insurance plan as well as special unemployment and retirement packages.
0
ThonTaddeoJan. 11, 2012 - 03:38PM JST

John, I'd invest most of my life's savings in such bonds tomorrow if they were offered -- where else can you find a safe return like that?

(I do hope that by 'citizens' you mean individuals living in Japan, and not just people with Japanese nationality.)
- ModeratorJan. 11, 2012 - 03:40PM JST
  
  Back on topic please.