Japan’s $250 Billion Plan to Restart its Economy
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Recent evidence has suggested that Japan’s deflationary woes could be coming to an end, and to maintain this momentum, Ishiba has announced an enormous new stimulus package. So will this radical plan actually inspire some wage growth in Japan?
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Sources:
1 – https://www.nippon.com/en/japan-data/h02044/
2 – https://carnegieendowment.org/2010/03/18/japan-s-past-and-u.s.-future-pub-40356
3 – https://tradingeconomics.com/japan/inflation-cpi
4 – https://www.phenomenalworld.org/analysis/kishidas-new-capitalism/
5 – https://japan.kantei.go.jp/ongoingtopics/policies_kishida/newcapitalism.html
6 – https://www.statista.com/statistics/1467869/japan-monthly-real-wages-annual-growth-rate/
7 – https://english.kyodonews.net/news/2024/11/c0096bc410e8-update1-japan-govt-oks-39-tril-yen-economic-package-to-ease-inflation-pain.html
8 – https://www.ft.com/content/6c893292-3cbc-4dc1-bdac-c46cddc58c1c
9 – https://www.statista.com/statistics/756192/japanese-government-bonds-by-type-of-holders/
10 – https://tradingeconomics.com/japan/currency
45 Comments
CORRECTION: In the original video, we twice confused GDP for the national budget. We have edited the video to fix this – if it's still wrong when you're watching it, it'll be because the new version is being uploaded, and so hopefully fixed soon. Also, at 3:38, the graph says 2021 when it should be 2024. Apologies for these errors, and we hope you nonetheless enjoyed the vid!
The Japanese public and media, similar to those in other countries, tend to significantly re-evaluate and appreciate prime ministers after their tenure. In reality, he is a figure who has substantially promoted the revitalization of Japan's economy through measures such as reducing various national burden rates and encouraging companies to raise wages (please note that this is a personal opinion).
Japan good days are gone.. we cannot expect anything in next 5 years.. Yen values diminished as never before against USD.. Japan govt also not interested to take any steps to revive the yen value… they might thought lower yen value bring more tourism
You really are a clown, they have been trying this for decades.
Home and stock prices remaining low is a good thing. This new economic policy won't end well. Massive inflation is much worse than minor deflation.
While Japan has the highest production rate of the working population among the G7, it also has the largest non-producing population, the elderly 🤔
They desperately need immigrants to support work force and battle the rapidly aging society, but they make it incredibly difficult for foreigners to thrive in their society
Quite convincing.
In particular, the video clealy argues while the vicious circle of wages and inflation is comon sense to economists in the world out side of Japan, the Ishibanomics is busy preaching to the Japanese people a virtuous cycle of wages and inflation. It suceeds in suggesting too much stimulus both in fiscal and monetary policies is risky stragegy given the plumetting Yen currency and the acceralating rate of inflation in the economy.
Although it is about 8 minutes, the video fairly accurately captures the current state of the economy and the challenges.
It is a bit surpriseing to me in a pleasant way as a former World Bank economist that this Youtube videos on the Japan economy (macro) has been created by non-Japanese.
Nothing exceeds this level in Japan.
I highly recommend watching it.
she speaks too fast 😅
Wage spiral is a phenomenon that we haven't seen. Maybe in the 70's. So we're told. Currency depreciation has attributed to what little Inflation japan have. And has given thrm a nudge.
0:03 That intro was brutal💀
OK, and deal collapsed.
Japan will never emerge from its crisis until its population realizes that the solution lies in entrepreneurship. In 2024, almost 2025, Japan still believes that starting a business is a gamble and that the best idea is to have a stable 9-5 job. They can’t even speak English and hate tourist. The left, even if it pretends to be right, will never stand firm, and Japan is left-wing even if it dresses as right-wing wolf; but we know you, sheep. The government has their nose in every single sector including the 893.
Given the uncertain economic conditions and heightened global tensions, I'm considering investing over $800k in stocks. However, I'm uncertain about how to minimise potential risks.
If they can free up the costs of importing and taxes we would all buy more from there. Give opportunities to those wanting to move there and start a business
While we see deflation in Japan, I see my country Brazil going through high inflation since Lula (left wing party leader) is in presidency. Things are getting worse in Brazil, while Milei (the Argentine president) is fixing the Argentine economy, Brazil is already surpassing Argentine inflation to become the highest in South America.
The Brazilian government elected in 2022 took Brazil in the blue and now puts it in the red and due to overspending and tax creation, it is now in a huge deficit. We are going to hit rock bottom if no one stops him soon.
During the pandemic, the Brazilian currency against the dollar was 5.30 and now in December 2024 it is 6.20
The left-wing Brazilian government manages to be worse than a global pandemic, I'm shocked
Higher Servicing Costs do say More Debts are required but with Efficiency you got the Revenues.
The Revenues from the BalanceSheet do give Soft Wage Spiral.
The Revenues off the BalanceSheet do give the Asset Bubble that contributes to Inflation.
It isn't the Productivity that gives the Profits for Revenue Based BalanceSheet of Growth 💹.
It's the Efficiency that does.
Do anybody have any doubts about Japanese Productivity as they're known for Hardwork while the Americans are considered to be Lazy.
Japan and plan… Two words that don't mix well… We're fxxked honestly
As a foreigner living in rural Japan it still shocks me after 10 years how disheveled and poorly maintained roads and infrastructure are. It’s not third world, yet it feels worse for me. I pray things change for these delightful and dignified people sooner than later! 🙏🏻
I guess like everything else on this island, this is a …"unique" problem
Japan needs DOGE as well to simplify processes
Japan economy is fairing better then France and Britain. The country that has the worst economy right now is North Korea
US has a high interest rate debt than Japan low interest debt.
Good video but need to check the acoustic of the room as there’s reverberation
Why almost no one mentions tax burden? Progressive income tax is so high that it is said there is no point of earning more than 8 milion yen yearly. It's really a simple system. People work and get money. The harder they work the more money they get which can be spent on goods and investments creating more jobs and wealth. If people have no motivation to work harder, because most of their money go to goverment, economy doesn't grow. High taxes are not a problem only in Japan, but in most developed countries.
I'd say the problem with all of this is that most economies of the world are shrinking, so there's virtually nobody who wants to buy anything. So whatever economy any country might consider needs to be geared to a depopulating world. Japan could easily resolve their food import insecurity using smart application of tech, and there's alot of room to explore in geothermal power that could make the country far more secure from nuclear accidents and also save them from gas and electricity dependency. Japan could choose to provide an alternative to Chinese production of bulk low-end electronics parts. Japan could export train tech to other governments that need it.
Nowhere near enough considering the US federal debt.
No plan will work to Japan's economy instead the japanese folk that rule the country changes their mindset!
Japanese interest rate one of the most least around globe most of time.
日本の政治家は世界トップクラスで無能です。この国に生まれたことを後悔したわ
Commodity prices continue to rise more than increase in wages due to weak yen and the Japanese ruling party is reluctant to reduce income tax.
Large Japanese companies with overseas revenues continue to perform well, but the lives of Japanese people are likely to remain difficult for a while.
Japan is the window into the next hundred years. When you have a declining population, you just don't have an expanding economy. Let's face facts. Kids.
もういいやめて
Inflation is not domestic demand driven imo. It’s due to the abomination of the yen price and overseas markets.
Local people are not faring well.
The inflation rate is a shocking lie. Prices have gone up 30% in most areas. Sometimes double. This after 25 years with no change.
The wage inflation does not cover that and people are stopping going to restaurants or doing leisure activities so self employed people are losing money.
Then the silly idea of raising the minimum wage to make the statistics look good. What nonsense that it will increase household income. Those jobs are for college kids and singles. They more have more money to fritter away and raise inflation for the middle classes to suffer from.
The yen is the key to it imo. Please start buying and hoarding it folks coz each successive government has a new clown policy here and everyone just ignores them and carries on stoicly.
I'm Japanese. The majority of Japanese people dont support the Japanese government. The current government is doing the opposite of public opinion.
Informative and concise, thanks
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Ishiba collapses Japan.
Japan, like its ally the United States, is facing immigration issues that are beginning to surface
however, the economy is still growing, albeit slowly, and prices are stable
im a malays, but I feel that hate and bullying from Japanese to foreigners is increasing, many views to vietnams cambodia etc
This update seems outdated, Japan has outrageous inflation since Abe-san's abenomics and the Ukraine-Russian war the broke out in Feb 2022, this war caused the inflation to get even worse than 2% target, the real estate prices in Tokyo are now 2 to 3 times the pre-2022, while wages doesn't increase much.
All that came out about money
Crown throne planted
Let me add key factor of failure Abenomics. At start point inflation occurs for 14 months, but silly government destroy success by raising consumer taxes from 5 to 8%.
Those stimulus package to poorer people just go to waste because they are just taking advantage of the government, where they dont work that hard when they really can, or get a job where they arent registered on city hall as working to evade tax. Imagine working and getting average salary, no tax and even getting the stimulus package money from the government.
I'd understand if they'd give it to the ones whos not really able to work, but to give it to the ones who can work but just doesnt want to? Thats plainly lazy.
And for those who'd say "I should do the same", nah, I aint like you, I play fair.
Dont give the excuse "its hard to find a job, etc" theres too many companies hiring.
None of this addresses the lack of innovation in the stagnant economy or the low birth rate.
PLS ! Save Japanese citizen from Japanese government !!!