Japan economy

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Sep 20, 2016 06:18 japan economy
Japan economy

Prim minster Shizo Abe (Super Mario) said should have stopped the deflation.

(Abenomix)

No1.Monetary ease by BOJ or Bank of Japan.

No2.Financial expenditure(Public investment)

The efect of Abenomics is good for our economy.
Unempoloyment is getting down.
The rate of unempoyment is about 3%.
The wage is getting highter.

But,consuremer pric isn't getting higher until now.
The tax increase colored consuremer price.
Japanese tend to save money due to the anxiety of the futer.

(Deflationary spiral)

If we don't use money.the consumer price is getting down.
And then,the profit of the companey is also gtting down.
Some japanese companies went bunkrup.
The rate of unemployment is getting high.
That's deflationary spiral.

Sinzo Abe decided to undertgake economic expendeture
about 289 bililon dollars.

(concrete example)

1.Construction of the linear Shinkansen ahead of schedule
2.Port development that can accept a large passenger ship
3.Financial support of small and medium-sized enterprises

We really want to recover our country.
If our company recover,the tax revenue will increase.

(Lost generation)

Buble economy stareted in 1987.
But it bursted in 1990.
The term of 1990 to 2016 is called "Lost generation".

The treasury ministy and BOJ made mistakes seriously duaring the term.
Therefore young people weren't able to get a job.
Many companiese ernt buncrupt.
Many emplors were fired.

As the result,over 20 years old men who couldn't get marriged due to this deflationaly spairal.
The rate of unmarriged is about over 20%.
It means the decrease of our popuration.

I expect our economy recover until Tokyo Orympics 2020.