The frenetic activity of the government of Japanese Prime Minister Shinzo Abe has prompted optimism that Japan can reverse its economic drift. But activity shouldn't be mistaken for achievement.
Under Abe's second go as prime minister, Japan has initiated an ambitious "three arrows" economic recovery plan, christened "Abenomics." (Recent growth figures are cited as proof of the success of these new policies, despite the fact that they were not in place during the relevant period.)
The first arrow is a 10.3 trillion yen (US$100 billion) fiscal stimulus program to increase public spending. The second arrow is a further easing of monetary policy to increase demand, investment and inflation (to 2%). The third arrow mandates structural reforms to increase incomes and improve Japan's industrial competitiveness and productivity. Japan's total factor productivity in the manufacturing, non-manufacturing and agricultural sectors is the same as in 1991.
The policies have all been tried before, with limited success.
The government's spending program follows 15 stimulus packages between 1990 and 2008. Based on previous experience, it may provide a short-lived jump to economic activity but will not create a sustainable recovery in demand.
Following the bust of a shopping site selling shoes containing a miniature camera used to take illicit photographs, Kyoto Prefectural Police are now seeking the return of the merchandise from customers, it was revealed on Tuesday, reports the Mainichi Shimbun (Sept. 17). (Tokyo Reporter)
Japanese Emperor Akihito and Empress Michiko may visit Palau next year, the 70th anniversary of the end of World War II, to pay their respects to Japan's war dead, Chief Cabinet Secretary Yoshihide Suga said Tuesday. (Jiji Press)
A car was partially buried due to small mudslide and three people sustained injuries after a magnitude-5.6 quake hit a wide area of Kanto region in Japan around noon on Tuesday, according to local report. (shanghaidaily.com)
The government had lifted a vehicle ban on National Route 6 through the area where residency is restricted due to the crippled Fukushima No. 1 plant, the first time that stretch of highway has been open to automobiles since the nuclear crisis began in March 2011. (Japan Times)
The number of people aged 65 or older in Japan comes to a record 32.96 million as of Monday, accounting for an all-time high of 25.9 pct of the nation's total population, the Ministry of Internal Affairs and Communications estimated Sunday. (Jiji Press)