Japanese Economy

Because of US government shutdown, Dow Jones stock average has declined biggest ever in Christmas Eve. That made a big impact on Nikkei 225 stocks. It became blow 20,000 and the lowest first time in one year and eight months. It is often said that if the US sneeze, Japan gets cold. It is very related but the damage of Japan is much bigger than the one of US.

Japanese economists predicted that Japanese economy won’t recover while the US will return because the US has healthy condition that both suppliers and buyers are existing but Japanese stocks are supported by the government fund.

The Abe administration is planning to rise a consumption tax from 8 percent to 10 percent in the fall next year, but it was postponed in the past due to the weak economy. If this situation is continued, it would postpone again. I hope the raising consumption tax is canceled and hopefully it is going to be decreasing or nothing.

Japan is still a middle of the deflation for more than twenty five years. If it goes to be postponed.

Now the Japanese economy looks better in terms of numbers, however, it feels still not good in real life. So if The consumption tax was raised, the Japanese economy would have so much damages then plunge so deeply and never recover again.

Rather we have to create the new other ways to increase taxes like to beef up the infrastructure to progress the business, to reform the regulation to limit the business opportunities and speed up the process in the government.

To raise a tax never increase the income rather decrease economy then declines the amount of total revenues.

Diplomatically, I think that the Abe administration is doing well, but I think that there is still more to be done economically.

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