Stop, Dammit!: Japan Passes (Yet Another) Stimulus Package
October 26, 2010 Leave a comment
Why does Mr. Kan insist on repeating the mistakes his predecessors have made on economic policy?
The DPJ is basically set on injecting more government funds into the Japanese economy. All 5.1 trillion yen of it (around USD63 billion).
I don’t think that they A) realize that they already have a massive debt to GDP ratio (they say they don’t plan to issue bonds, but I doubt it) and B) that these solutions never work. Especially when you don’t change anything and try the same approach your predecessors have. Putting money into infrastructure projects and cost cutting has been shown to have little to no long term effect in post-bubble Japan.Why in God’s name would they do the same thing again KNOWING that it won’t work?
It’s this kind of tired mentality that needs to be changed in Japan. All it’s really creating are roads to nowhere. Literally and metaphorically.