Abe’s new economy – hands off, please government
[30 Nov 2006]
The Japanese economy has been very sick since the early 1990s. They have run up huge deficits in an attempt to keep things moving, but have moved in and out of recession and have experienced deflation.
Koizumi appears to have done a good job in changing mindsets (it helped when he had a dramatic election where many of the resistant fuddy-duddies were removed) and moving the economy onto a growth footing.
Now Abe, in his newsletter today, is talking about his first budget. He says:
The era of propping up the economy by investing large sums of money in public works projects is now a thing of the past. The question we face today is how to cultivate Japan’s true vitality and competitiveness through local and private-sector efforts, instead of using the national budget to keep the economy temporarily afloat.
Seems like a good move to me. But will there be enough young people to continue such private-sector efforts in the next few decades?