Japan Fiscal policy implemented/discussed

Fiscal Policy in Japan

In 2019 prime minister Shinzo Abe raised the sales tax from 8% - 10% with the hope of achieving growth in the economy. officials were worried that the low demand for international trade would impact the Japanese economy. Many people argued against this decision since a majority of Japan's GDP is from consumer spending as well as the fact that trade had slowed. Officials in the Japanese government have pushed for an increase in fiscal spending in response to the tax hike, hoping that it will help keep the economy from falling. In 2019 the deficit was 2.8% of Japans GDP. 


Comments

  1. Dr. Q September 30, 2021 at 4:06 AM

    Why would Abe think that raising the sales tax could contribute to growth in the economy?

    ReplyDelete

Post a Comment

Popular posts from this blog

Real GDP of Japan

Image
Japan GDP Stats  Real GDP growth per year Over the Last Ten Years  Japan GDP Per Capita Over the Last Ten Years  Real GDP Growth Per Year For the Last Ten Years  Unemployment Rate for the Last 10 Years  Source: https://www.macrotrends.net/countries/JPN/japan/unemployment-rate Inflation Rates for the Last ten Years  Source: https://www.macrotrends.net/countries/JPN/japan/inflation-rate-cpi Current Account Balance for Japan over last ten years  Source: https://data.worldbank.org/indicator/BN.CAB.XOKA.CD?locations=JP Hidden Economy percent  Source:  https://www.theglobaleconomy.com/Japan/shadow_economy/     The GDP for Japan has been pretty linear over the last ten years. In the charts, you can see that there isn't a lot of movement. The only real change in the GDP has been a little dip around 2015, but other than that the GDP has been relatively stagnant. The inflation rate also spiked in 2015, which I don't really...
Read more

Tariff on Agricultural Imports in Japan

Image
 Tariff Implemented on Agricultural Products in Japan       Japan has implemented a tariff on all major agricultural imports, beef, rice, wheat, pork, dairy, and sugar. The main goal of this terrific is to protect domestic producers of agricultural goods from the competition of cheaper imported goods. Putting a tariff on agricultural imports allows domestic producers to sell their goods for a better price than the imported goods. Domestic farmers can compete in the market against international producers through lower prices, which results in a higher demand for their products. Foreign farmers will have worse margins on goods they import to Japan. A tariff on imported agricultural goods will likely cause a decrease in the number of agricultural goods being exported to Japan. Producers would rather send their goods to a nation where they can make a greater profit. As a result of fewer competition for domestic producer, their profits will increase. The government i...
Read more