Late 80s, early 90s Japan was majorly in debt. That deficit spending in the 1980s didn't buy nothing. It bought tremendous GDP growth and huge innovation that lead to technological envy.
The thing is, government deficit spending isn't effective. best described as trying to put out a fire using a leaky bucket. It also leaves you up around 100% debt/gdp and when the inevitable next crisis hits. In this case the 1997 asian financial crisis did japan in. Japan's gdp basically hasn't been any better since. You get pushed over the 100% threshold and it's only upward for your debt. Your debt climbs and climbs but your gdp doesnt follow the same growth once you pass 100%.
Worse yet, their economy is basically in deflationary spiral but they are only managing to keep from collapse by more of what put them into the problem to beginwith. This is the "I will cure my cocaine addiction with more cocaine." tactic.
>The Personal Income Tax Rate in Japan stands at 55.97 percent.
#heartattack
Call an ambulance but not for me. Japan what the hell are you doing? You work for the government more than half the year and you get very little for it.
You have crippled your country for decades and have lost your envious lead. You have to pay the piper eventually. Why have you ruined more than 1 generation of your people by not balancing the budget?
You have a total tax burden of over 90%. So you can't tax your way out. You can print money and pay off the debt. Pull the wealth out of those holding onto your currency. Primarily retirees are going to be punished, they are who racked up the debt, yes silver crime will blow up, yes most of them have to go back to work. Yes poverty and unemployment will be very punishing.
Dont like this inevitable pain? Require your government to always balance the budget.
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[ 62.3 ms ] story [ 873 ms ] threadhttps://tradingeconomics.com/japan/government-debt-to-gdp
Late 80s, early 90s Japan was majorly in debt. That deficit spending in the 1980s didn't buy nothing. It bought tremendous GDP growth and huge innovation that lead to technological envy.
The thing is, government deficit spending isn't effective. best described as trying to put out a fire using a leaky bucket. It also leaves you up around 100% debt/gdp and when the inevitable next crisis hits. In this case the 1997 asian financial crisis did japan in. Japan's gdp basically hasn't been any better since. You get pushed over the 100% threshold and it's only upward for your debt. Your debt climbs and climbs but your gdp doesnt follow the same growth once you pass 100%.
Worse yet, their economy is basically in deflationary spiral but they are only managing to keep from collapse by more of what put them into the problem to beginwith. This is the "I will cure my cocaine addiction with more cocaine." tactic.
>The Personal Income Tax Rate in Japan stands at 55.97 percent.
#heartattack
Call an ambulance but not for me. Japan what the hell are you doing? You work for the government more than half the year and you get very little for it.
You have crippled your country for decades and have lost your envious lead. You have to pay the piper eventually. Why have you ruined more than 1 generation of your people by not balancing the budget?
You have a total tax burden of over 90%. So you can't tax your way out. You can print money and pay off the debt. Pull the wealth out of those holding onto your currency. Primarily retirees are going to be punished, they are who racked up the debt, yes silver crime will blow up, yes most of them have to go back to work. Yes poverty and unemployment will be very punishing.
Dont like this inevitable pain? Require your government to always balance the budget.