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Abenomics is working


seabhcan

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BBC News - Japan's economy shows recovery signs in boost for Abe

Japan is heading to 3.5% growth this year, up from 1% before the new policy of Abenomics was begun. Abenomics is basically the radical idea that government should spend money during a recession, rather than cutting back and making the recession worse.

Oh, and the Eurozone is still in recession due to attempting the opposite of Abenomics.

Can Abe save Europe too? Will Germany allow it?
 


Carlos Danger

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[video=youtube;G_DV54ddNHE]http://www.youtube.com/watch?v=G_DV54ddNHE[/video]
 

Ren84

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Impressive. Certainly some lessons for us Europeans. Of course the Paulbots will go crazy at the idea of good old fashioned Keynesian economics, but fek em sure. :)
 

Amnesiac

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Future taxpayers will have to pay back this spending in higher taxes and/or reduced spending. The Japanese is simply shifting consumption though time and placing the burden on future citizens. Total debt rises to facilitate the rise in GDP. Keynesians must explain why this leads to a better outcome than no stimulus and lower debt. What are the costs of doing nothing? Is there a unique problem which only government stimulus can resolve?
 

seabhcan

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Future taxpayers will have to pay back this spending in higher taxes and/or reduced spending. The Japanese is simply shifting consumption though time and placing the burden on future citizens. Total debt rises to facilitate the rise in GDP. Keynesians must explain why this leads to a better outcome than no stimulus and lower debt. What are the costs of doing nothing? Is there a unique problem which only government stimulus can resolve?
No - the old will pay now via inflation. But money is not a zero sum game. If printing money gets people into work, and spending money, and consuming more, and thus creating more employment, everyone benefits and no one is worse off. Money is only valuable when spent.
 

Amnesiac

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No - the old will pay now via inflation. But money is not a zero sum game. If printing money gets people into work, and spending money, and consuming more, and thus creating more employment, everyone benefits and no one is worse off. Money is only valuable when spent.
Japan is not reliant solely on monetary stimulus. They have a very large fiscal deficit. Somebody has to pay that back down the road. Today's taxpayers are not bearing the full cost of these measures. That may be permissible if today's "shot in the arm" improves tomorrow's prospects for everyone. You need to explain why it does. Why is government action preferable to inaction?
 

seabhcan

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Japan is not reliant solely on monetary stimulus. They have a very large fiscal deficit. Somebody has to pay that back down the road. Today's taxpayers are not bearing the full cost of these measures. That may be permissible if today's "shot in the arm" improves tomorrow's prospects for everyone. You need to explain why it does. Why is government action preferable to inaction?
They tried doing nothing and it didn't work. They tried nothing for the last 20 years.

Lost Decade (Japan) - Wikipedia, the free encyclopedia

Now they are trying something.
 

Ribeye

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I'm not even going to bother, time will show the truth,

Japan is a ticking bomb,
 

firefly123

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I'm not even going to bother, time will show the truth,

Japan is a ticking bomb,
Ahh everywhere is a ticking bomb in some or another. The game is to not be the one holding the bomb when it goes off :)
 

Congalltee

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Here's a radical idea:
Match government current expenditure to current receipts by either raising taxes on those who pay little tax (ie earn less than €35k, corporations, exiles) or cutting expenditure (which leaks abroad overseas aid, social welfare, certain engineering projects)

Then, as a stimulus, social partners draw up a list of what major infrastructure or capital expenditure is required, civil servants to a cost/benefit analysis and politicians decide which ones get to be done (subject to oversight by the Troika who will fund it or by approving of it keep the interest rate low).

Currently Irish politicians idea of a stimulus is building a ppp road and paying the private contractor if it's not used enough or Schools/hospitals in their own constituency.
 

Howya

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Japan didn't deal with the bad debt hangover from the borrowing splurge in the 1980's - that is what initially caused the lost decade....and yet "we" seem to be ignoring that valuable lesson.
 

Ribeye

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Ahh everywhere is a ticking bomb in some or another. The game is to not be the one holding the bomb when it goes off :)
Well than they better hurry up with that mission to colonise Mars,

Coz when the Dollar Reserve bomb goes off, all of earth will be hit by the blast wave.

"KA.................BOOOOOOOOM"
 
S

simeongrimes

One of Japan's biggest problems is declining population. They have a very low birth rate and don't let may immigrants in. I suppose it's fine to load debt on future generations if they are not going to show up to pay it. It's going to be the same here by the way. Our problem won't be birth rate but emigration. Anyone with any sense will have already left town when their turn to pay comes around. Our high tax low services model (ie the lowest public transport subvention and the highest paid bus drivers) is neither left nor right. It's just corrupt and stupid.

That's the problem with advocating an end to austerity here. It will simply mean the social partners screwing the workers again. In a banana republic sensible policy disagreements are beside the point. We don't have to option of high tax and good services. Nobody has a notion of providing them. So starving them of revenue is our only option.
 

Amnesiac

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Feel free to elaborate.
You are advocating the policy. You should really be the one providing the rationale.

Japan responded to their crash with heavy spending on public works projects. Their debt to GDP ratio ballooned well into triple figures over this period. You are plainly wrong to say that they did nothing for the last 20 years.
 

seabhcan

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You are advocating the policy. You should really be the one providing the rationale.

Japan responded to their crash with heavy spending on public works projects. Their debt to GDP ratio ballooned well into triple figures over this period. You are plainly wrong to say that they did nothing for the last 20 years.
Do you know any details about these previous stimuluses?
 

firefly123

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Well than they better hurry up with that mission to colonise Mars,

Coz when the Dollar Reserve bomb goes off, all of earth will be hit by the blast wave.

"KA.................BOOOOOOOOM"
It's a good thing you are posting from another planet so!
 

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