>> The package of more than 13.9 trillion yen ($92.19 billion) is Takaichi’s first major economic initiative since the advocate of big fiscal spending took office on Tuesday, reflecting a commitment to what she calls “responsible proactive fiscal policy”.
GoodMousse3573 on
Skeptical of how well “spending more money” will work when the problem is “theres too much money floating around”
Aware-Computer4550 on
I’m going to eat this ice cream to tackle my increasing weight
Otherwise_Young52201 on
So actually I also wanted to post this earlier with the meme flair because this article makes the Japanese PM seem economically illiterate. And the fact that a stimulus generally increases inflation rather than decreasing it is true.
However, I think an economic stimulus could actually work in decreasing inflation (and promoting certain sectors as a desired effect) so long as the revenue for it comes from somewhere else, like increased taxes on certain sectors. That way you don’t increase the supply of money by just printing it and so this keeps inflation roughly the same (or even down depending on how much the government taxes).
IIRC the inflation reduction act works the same way in that it pays for itself through increased taxes thereby keeping inflation in check. As such we should wait for the full details of this plan to come out before clowning on her.
PancettaPower on
I admittedly read economics just as a minor hobby and know more about sumo than I do Japanese politics but…don’t you cut spending when you have high inflation??
6 Comments
>> The package of more than 13.9 trillion yen ($92.19 billion) is Takaichi’s first major economic initiative since the advocate of big fiscal spending took office on Tuesday, reflecting a commitment to what she calls “responsible proactive fiscal policy”.
Skeptical of how well “spending more money” will work when the problem is “theres too much money floating around”
I’m going to eat this ice cream to tackle my increasing weight
So actually I also wanted to post this earlier with the meme flair because this article makes the Japanese PM seem economically illiterate. And the fact that a stimulus generally increases inflation rather than decreasing it is true.
However, I think an economic stimulus could actually work in decreasing inflation (and promoting certain sectors as a desired effect) so long as the revenue for it comes from somewhere else, like increased taxes on certain sectors. That way you don’t increase the supply of money by just printing it and so this keeps inflation roughly the same (or even down depending on how much the government taxes).
IIRC the inflation reduction act works the same way in that it pays for itself through increased taxes thereby keeping inflation in check. As such we should wait for the full details of this plan to come out before clowning on her.
I admittedly read economics just as a minor hobby and know more about sumo than I do Japanese politics but…don’t you cut spending when you have high inflation??
This but replace home prices with inflation
https://preview.redd.it/jhd2doa7dqwf1.png?width=640&format=png&auto=webp&s=f858036d05e99a8e5405993b387bd97e736f2872