Honest Abe
Is Abenomics Working?
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  • Andrew Allison

    As we observe here at home, the economic impact of ramping up government spending depends on how the money is being spent, i.e., to pay evermore government employees to produce evermore stifling regulation, or to stimulate economic growth by buying goods and services from private industry.

    • michaelj68

      Not sure if Abe is different but under the previous administrations from anecdotal evidence a lot of stimulus money was pumped into infrastructure. One reason is the construction industry are big supporters of the LDP. Not sure if the projects are useful or more white elephants, for example, one of the longest suspension bridges in the world, Akashi Kaikyō Bridge, and an airport built on artificial island, Kansai Airport.

  • Jacksonian_Libertarian

    I think that until we see some real inflation in Japan, that we have to assume that the destructive deflation is still in place, and that Abenomics is a failure. I applaud the Japanese central bank’s looser monetary policy, but as long as the central bank has massive foreign treasury holdings it will have a hard time inflating its currency. It’s the Debt (both Public and Private) to GDP ratio that is important to a nation’s economy. When Debt reaches a certain point, deflation sets in and the economy’s ability to dig itself out of Debt becomes steadily harder as wages stagnate and businesses go bankrupt. In such a position only a “shock and awe” program of paying off most or all of the Government debt by the central bank, can get inflation back to reducing private debt and making it easier to pay off.

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