New PM Takaichi vows economic stimulus to fight inflation

Prepare for more military spending, from the current 1.4% of GDP toward the 5.0% being demanded by “The Don,” who will be here next week to personally set up the collection schedule for the “protection arrangement.”

Because women are barred from entering the sumo ring (dohyo), I guess we won’t have a prime minister presenting the Prime Minister’s Cup at any of the upcoming sumo tournaments.

I count two female ministers. Where is the "Nordic style cabinet" full of women that Takaichi touted before her election?

Broken pledges on her first day, not a good start.

If she (and ANY politician) actually wants to help improve the daily lives of actual people, then immediately reduce the consumption tax back to 5% or 3%, or better yet, back to the only appropriate rate of 0%.

Taxation is Theft.

Where are those “Nordic levels of women in cabinet” Takaichi promised just two weeks ago?

vows economic stimulus to fight inflation

Pouring money to fight inflation, sounds familiar? How it goes in the past?

So anything really change in Japan?

Minister in charge of economic security, minister in charge of promoting society of well-ordered and harmonious coexistence with foreign nationals, minister for "cool Japan" strategy, minister for intellectual property strategy, minister for science and technology policy, minister for artificial intelligence strategy:

promoting society of well-ordered and harmonious coexistence, "cool Japan" strategy, what that's all about?

That Koizumi guy must be so talented! He first was appointed Minister for the Environment, next Minister of Agriculture and now Minister of Defense.

Thankfully the bureaucrats at each of these agencies drafts speeches for him to give. It also helps that they work on the answers to questions that Diet members will give before any hearing.

There's some pretty ridiculous sounding ministerial names in there.

@sakurasuki

Cool Japan is essentially Japan tourism promotions. Trying to make Japan seem cool and modern to people overseas.

Insee no mention of Aso as a minister. Jes too busy puppeteering takaichi no doubt.

Pouring money to fight inflation, sounds familiar? How it goes in the past?

Macroeconomics apparently works differently in Japan.

@hIMadeAnAccountJustForThis

Before it was METI who responsible for Cool Japan, it has huge budget starting from 2011, however in term of success that's different story.

https://japantoday.com/category/entertainment/gackt-lashes-out-at-cool-japan-almost-no-results-of-japanese-culture-exported-overseas

https://www.japantimes.co.jp/culture/2021/05/31/general/cool-japan-success/

https://asia.nikkei.com/business/finance/government-weighs-fate-of-floundering-cool-japan-fund

Wow! Defense Minister: Shinjiro Koizumi, 44

How on earth is this warranted? He did such a great job in his previous roles.... Being groomed for the top spot in the future is the only rationale thing I can surmise.

Takaichi said Tuesday that her government will draw up a stimulus package to address rising living costs.

Takaichi san, that is what we all want.

Decrease our daily living cost for food, electricity, ...and so on...

Additional make the Yen strong again, and force japanese companies to increase our salary.

Make our lives in Japan again comfortable and safe.

Can you do that?

I am not sure...but I hope for the best.

Wow! Defense Minister: Shinjiro Koizumi, 44

Just a year younger than his counterpart, Pete Hegseth, Secretary of War.

Reducing taxes and thus income side of the nation's balance sheet, while simultaneously increasing spending, sounds like a well thought plan. Again, 235% of GDP national debt swelling to 250%+++

Perseverance in Precisely the Wrong Direction

Doing the same thing over and over and expecting a different result is a popular definition of . . . . .

I'm just a guest here, not really impacted any political decisions made other than having to leave the country. Have no view other than to wish them well, lots of luck, hopefully they can do some good.

That Koizumi guy must be so talented! He first was appointed Minister for the Environment, next Minister of Agriculture and now Minister of Defense. 

Mr. Koizumi—clearly the Swiss Army knife of the Cabinet. One moment he’s tending to the trees, the next he’s milking cows, and now he’s polishing bayonets. Quite the résumé.

It’s like musical chairs, only the music never stops and the chairs keep getting more dangerous.

Let's play a game called Spot the Woman in the Cabinet.

New PM Takaichi vows economic stimulus to fight inflation

I'm not holding my breath.

Because women are barred from entering the sumo ring (dohyo), I guess we won’t have a prime minister presenting the Prime Minister’s Cup at any of the upcoming sumo tournaments.

Mark, that is a very interesting point. It will be interesting to see how things pan out.

The vowing has started already. Based on the rest of the jimin predecessor performance, it means nothing is going to happen.

2013 Abes three arrows, aggressive monetary policy, flexible fiscal policy, structural reform of the economy

The vital third arrow structural reform, remains to this day never to be implemented, leading to a failure to achieve sustained growth., a lack of meaningful labour market deregulation, no sight of corporate culture reform, the negative regressive impact of tax increases on rises consumption consumer tax/confidence, hindering canalling out any plan or ability to boost wages and investment.

This I contend has exasperated ambition, stalled wage earnings, increased the threat/ accelerating depopulation

By all intents and purposes Prime Minister Sanae Takaichi is insistent intent on borrow, borrow, borrow.  

No policies for the need to comprehensive market/labour reform.  

No possibility of general election, to secure a mandate from the people.

More unstable minority government appears to be the order of the day.

Weak dishevelled, ineffective, disorganised opposition must pull themselves together promptly.

Inflation is pushing the cost of living burden on working familes on a monthly cycle.

In Kochi my local supermarket 5 kg of rice is close to 5000 yen.

A "stimulus package" is inflationary. The government will never admit it but the only hope to finally wrangle the debt problem in Japan is to inflate it away.

However, abolishing the provisional gasoline tax rate and increasing the nontaxable income amount sounds like really good policy. Let people decide how best to spend their money instead of the government.

Where is the "Nordic style cabinet" full of women

That comes quickly when alll the men have failed. lol

But fun aside, I can detect some overlappings, for example science and tech. Anyway, the new Prime minister Ms Takaichi first should be given some time to establish everything, before you all come up with harsh criticism already after a few hours.

New PM Takaichi vows economic stimulus to fight inflation

A full frontal display of macroeconomic ignorance. Stimulus is not the right tool for fighting inflation. Hopefully the Japan PM revolving door spins a little faster and she is removed or resigns before she can inflict too much damage on Japan.

4 arrows!

Increasing debt typically means higher bond rates and a weaker currency. Also, I am not aware of any stimulus in the past that had the effect of lowering prices.

(The covid era stimulus packages drove intense inflation worldwide)

Is there something unique about the economics of Japan that makes it possible to subvert the laws of supply and demand?

Let's see just how awful this woman will be .

what a nordic cabinet.will it last at least 6 months?

It’s the LDP, the lack of “Nordic levels of women” is therefore the first of many failed promises to come.

New PM Takaichi vows economic stimulus

oooh, new name..................

same old ideas, plans and mentality.

Large-scale expansionary fiscal policy has failed every time, so it should not be implemented. To achieve a fiscal surplus, I think it would be acceptable to raise the consumption tax instead.

TOO MANY Ministers, don't mind if the get paid by the hour or their accomplishments.

Do their best for Japan!!..

I think it would be acceptable to raise the consumption tax instead.

The long suffering Japanese consumer would no doubt be over the moon at your idea of raising the consumption tax. Acceptable?...geez.

2013 Abes three arrows, aggressive monetary policy, flexible fiscal policy, structural reform of the economy

The vital third arrow structural reform, remains to this day never to be implemented, leading to a failure to achieve sustained growth., a lack of meaningful labour market deregulation, no sight of corporate culture reform, the negative regressive impact of tax increases on rises consumption consumer tax/confidence, hindering canalling out any plan or ability to boost wages and investment.

This I contend has exasperated ambition, stalled wage earnings, increased the threat/ accelerating depopulation 

By all intents and purposes Prime Minister Sanae Takaichi is insistent intent on borrow, borrow, borrow. 

No policies for the need to comprehensive market/labour reform. 

No possibility of general election, to secure a mandate from the people. 

More unstable minority government appears to be the order of the day.

Weak dishevelled, ineffective, disorganised opposition must pull themselves together promptly.

Inflation is pushing the cost of living burden on working familes on a monthly cycle. 

In Kochi my local supermarket 5 kg of rice is close to 5000 yen.

Excellent post.

I totally agree with you.

economic stimulus to fight inflation

So... going to print and distribute money to fight situation caused partially by too much money? She's a freakin' genius!

Let her do the job, cut the whine, ladies..

LOL

She pledged to "swiftly" abolish the provisional gasoline tax rate and increase the nontaxable income threshold from the current 1.03 million yen by "listening to opposition parties' opinions."

The economic measures are intended to "boost people's net income and reduce households' burden," Takaichi said, adding that she will make every effort to ease the negative impacts of U.S. President Donald Trump's higher tariffs.

It sounds good, but such measures will only add to inflation that punishes consumers and pressures Govt. debt servicing costs to continue spiking upward

Policies truly needed include downsizing inefficient Govt. and promoting private sector investment and growth, especially reshoring critical supply chains

Mr. Koizumi—clearly the Swiss Army knife of the Cabinet. One moment he’s tending to the trees, the next he’s milking cows, and now he’s polishing bayonets.

Was surprised to see this as well. I know the party needs some young blood but Defense Minister in a time of increasing regional tendencies for the flakey lad does seem an interesting choice. He must have shown some serious loyalty and have hidden talents yet to be revealed!

As for those going straight to the gender count, Sanae is a conservative, which means she won’t be choosing people based on their gender, it’ll be all about who she thinks she can work with best , get the job done and create the Japan that she envisions. I know how much y’all want to see the world through those equity glasses too. At least though you will get to have those cheap political points and criticism, feel good about that cause that’s got to be a side bonus?

But for now a woman in the actual pilot seat will have to do.

Go get em Sanae. Japans own Iron Lady. The world is already buzzing. Enjoy the show folks cause she maybe just what a listless Japan running on fumes needs. Was in a lecture yesterday as the vote was announced ( don’t worry my students will never know my politics ) told the first year uni students when the vote came through and there was a very positive reaction. Girls were all happy and even the lads did a wee fist pump. I know they are not the most politically literate nation in the world, but Sanae may just be the inspiration this young generation needs. May explain Koizumi too. It’s the youth that are the future, we tend to forget that.

GO JAPAN!!..

itsonlyrocknrollToday  08:03 am JST

2013 Abes three arrows, aggressive monetary policy, flexible fiscal policy, structural reform of the economy

The vital third arrow structural reform, remains to this day never to be implemented, leading to a failure to achieve sustained growth., a lack of meaningful labour market deregulation, no sight of corporate culture reform, the negative regressive impact of tax increases on rises consumption consumer tax/confidence, hindering canalling out any plan or ability to boost wages and investment.

This I contend has exasperated ambition, stalled wage earnings, increased the threat/ accelerating depopulation

By all intents and purposes Prime Minister Sanae Takaichi is insistent intent on borrow, borrow, borrow. 

No policies for the need to comprehensive market/labour reform. 

No possibility of general election, to secure a mandate from the people.

More unstable minority government appears to be the order of the day.

Weak dishevelled, ineffective, disorganised opposition must pull themselves together promptly.

Inflation is pushing the cost of living burden on working familes on a monthly cycle.

In Kochi my local supermarket 5 kg of rice is close to 5000 yen.

Spot on

Fighting inflation with economic stimulus/more borrowed money is like fighting fire with gasoline.

Humm…Were they not asking for inflation before? And now that they got it, they do not want it? Be careful for what you ask because you might get it.

At least the ratio of recycled old dinosaurs seems to have come down slightly. But 2 women out of 22 (9%) seems very low. It is like they are not even trying anymore.

Nearly all of them are in bed with the Unification Church. These are the same people Japanese voters rejected and never want to see again. If the LDP doesn’t clean up its lineup after the last election, it’ll be wiped out.

Spitfire, Saltwater Shenanigans,

LDP rulling government, how many Prime Miniters?

Has been in near constant ruling government since 1955.

Abenomics, at least the fundamental so-callled promised truths, rules, beliefs supposition theory, for more than a decade, yet here we are the debt out of control, retail inflation eye watering. Families struggling in a cost of living crisis. It is not exactly confidence building.

Prime Minister Sanae Takaichi, although, to be fair earky days, has been in one post or another, part of LDP ruling goverment for as long as I can remember.

So I suggest what will change??

"minister in charge of promoting society of well-ordered and harmonious coexistence with foreign nationals"

This says it all. Foreigners are not part of Japanese society. They are not meant to be part of society. They are a separate species, and to be treated as such. Maybe on par with the challenge of well-ordered and harmonious coexistence with bears?

Go get em Sanae. Japans own Iron Lady

What has she done to deserve the title of ‘Iron Lady’?

I despised Thatcherism - the politics of toxic division and short-term solutions, but she held office for a decade and led the Tories to three election victories.

What has ‘Sanae’ done in her few hours in power?

P_C you are right to highlight the 235% of GDP taken by government debt. Even more worrying, but often less mentioned, is that servicing that debt takes up 25% of the budget each year, reducing the money available for real economy related expenditure. The comparative numbers for the US and UK are 13% and 8% respectively

A lot of men.

She's already broken her promise to have more women in Cabinet.

I see just 2 women.

grc

Today 11:36 am JST

P_C you are right to highlight the 235% of GDP taken by government debt. Even more worrying, but often less mentioned, is that servicing that debt takes up 25% of the budget each year, reducing the money available for real economy related expenditure. The comparative numbers for the US and UK are 13% and 8% respectively

How much was interest payments only?

Cephus，

It isn’t about left or right — it’s about not tolerating decay. Aso-backed rule is regression, not renewal. Stop guessing. Learn the facts.

The Unification Church has been rotting the LDP from within — and even the Pentagon reportedly traced funds from Japanese followers being laundered to North Korea. Given that, this cabinet lineup should never have happened.

You clearly don’t grasp that. Your sources don’t even cover what Japanese voters already know — you keep writing from impressions, not facts.

JimizoToday  11:33 am JST

What has she done to deserve the title of ‘Iron Lady’?

I despised Thatcherism - the politics of toxic division and short-term solutions, but she held office for a decade and led the Tories to three election victories.

She had also been Tory leader for a few years prior to becoming PM in 1979.

What has ‘Sanae’ done in her few hours in power?

Ricky here is obviously completely smitten. Little details like her accomplishments in politics won't matter.

Ricky here is obviously completely smitten. Little details like her accomplishments in politics won't matter.

Comes across like that.

Has she posted anything on social media? I’m off Twitter these days.

That gets certain types excited.

All platitudes. Fight INFLATION,? And a few years ago it was Fight DEFLATION.

Make your mind up!

KazukoHarmonyToday  06:41 am JST

Prepare for more military spending, from the current 1.4% of GDP toward the 5.0% being demanded by “The Don,” 

if they did excellent, so long as the Japanese government understood that they are buying American, paying yen to the dollar, supporting American jobs, supporting American companies, American shareholders and locking yourself into the U.S. defense system, upgrades and trading away some sovereignty to the U.S.

if they do increase spending make sure it’s in Japanese jobs, Japanese companies, Japanese shareholders and our sovereignty. The money spent is invested in Japan and not invested in the U.S. which is what the Don thinks will happen. There are so many other systems in the world that would be happy to get involved and work with Japan.

Great Takaishi admires "the Iron Lady", because that means she's got common sense = strong defense, limited Govt., lower taxes, private sector growth policies

Question is can she achieve these policies and help thus Japan escape ongoing Doom Loop of Big Govt. borrow and spend, higher taxes and demographic collapse

A huge congratulations to the Prime Minister Takainchi. To overcome the gigantic social norm of male domination in Japanese Politics should be applauded. But posted is nothing but down grading comments mainly from USA expats that have never had a female President. I have to remind them how backward a society is the USA who still have not had a female leader.

Ricky here is obviously completely smitten. Little details like her accomplishments in politics won't matter.

Will gladly take that. Always love how the mob wants to unite together in their dislike and hatred of someone. Anti-this and anti-that, then claim to be somehow forward thinking, compassionate and virtuous. Take a step back guys and wonder why you can’t stand people who don’t hate the same folk you do? Scandalous I know.

I ain’t on your boat, people get the benefit of the doubt on this one, and I won’t judge her politics yet because today is where we get to see what’s she’s made of at the START of her mission as PM. The fact that she has gotten this far in a system almost designed to keep her down should have all of our attention and respect.

No use even talking to the negative crew though, and those who are arrogant enough to have already made up their minds about people without even giving them a chance. It’s just the syndrome morphing. Hope you guys aren’t near any young minds or have any influence over others btw.

Always bat positive! The simplest and funnest approach to life. Better for the ole mental health as well. Wink.

In the meantime enjoy the show! looking forward to hearing her first big speech to the public. So are my young students.

No use even talking to the negative crew though, and those who are arrogant enough to have already made up their minds about people without even giving them a chance

Eh?

You called her an ‘Iron Lady’ after her being in office for a few hours. She hasn’t achieved anything yet.

I think it’s you who has made your mind up.

Again, what has she done to deserve that title?

A speech? A tweet?

Anything?

Good that PM Takaishi's made clear her high regard, even role model, regarding Ms. Thatcher, the Iron Lady.

By doing so, she's sending a strong signal to all across world and financial markets. It's a high bar she's setting.

Japan's #1 problem, ongoing inflation fight, PM Takaishi will have to 'slay' the inflation dragon, or she'll go down in flames just her predecessors and that means reducing Govt. spending, plus $incentivizing the private sector

PM Takaishi can't make Japan Great Again with continued elevated and sustained inflation

Jimizo

Today 01:32 pm JST

No use even talking to the negative crew though, and those who are arrogant enough to have already made up their minds about people without even giving them a chance

Eh?

You called her an ‘Iron Lady’ after her being in office for a few hours. She hasn’t achieved anything yet.

I think it’s you who has made your mind up.

Again, what has she done to deserve that title?

A speech? A tweet?

Anything?

I'm curious to know too. I'll gladly like admire anything that there is to admire, except for achieving something at age 64 that Margaret Thatcher achieved when she was 54, but all the Takaichi admirers can offer is fluff. I can't be bothered with people who can't deal with facts, good or bad, and then act all superior to people who are more objective.

Stimulus is not the right tool for fighting inflation.

It depends what you spend it on. Spend it on productivity gains and it will bring costs down. Spend it on US-made tanks that break down a lot and are sitting ducks for drones when actually used and its a waste of money.

My advice for fighting inflation is to stop cost-push inflation caused by the weak yen. That affects energy, raw materials, and food, basically the whole economy. If you want cheap prices, its also a good idea to not put sanctions on country B at the behest of country A. Do what is best for Japan only.

Key to reducing inflation, private sector 'supply side' growth, fuels productivity, NOT inefficient Govt. spending and stimulus that fuels inflation and currency devaluation

PM Takaishi needs to copy Thatcher's role model, Pres. Reagan, reduce wasteful Govt., invest in defense, cut taxes & regulations, incentivize private sector risk taking

So let’s look at how her admiration of the Iron Lady has manifested itself today.

Railways on its knees, as commuters were done over. A service that still isn’t anywhere near as efficient as Japans system and all the while money pushed to shareholders.

water: well that’s another total mess the Iron Lady proposed and again what a mess as the tax payer. Must foot the bill and pays shareholders for well …. Absolutely nothing.

how about the health service? Well that is completely broken up into small businesses and has been cut back further and further.

social housing mostly all sold off, and hardly any social housing but the kicker is the government now have to pay “private landlords” who can actually hike up the rent and the government MUST PAY UP or the tenants are out. Social housing that was sold for cash wasn’t allowed to be allocated to replace the social housing.

now how about her tax? Income tax down, but it’s the highest since how long? How did that happen?

Deindustrialized in favour of the financial markets but that seems to have just caused financial scandals, housing prices through the roof (no pun intended).

i think at the time we thought it was right but I think what’s happened it’s all come back to bite the UK in the bottom.

she was right about the miners though.

My students don't give a stuff about politics,they and their parents gave up on these tired old dinosaurs ,but they are frustrated and angry about steadily becoming poor and seeing relatively wealthy international tourists enjoying themselves and driving up prices.

I can see a Gen Z revolution on the horizon.

Takaichi’s fiscal stance—borrow, borrow, borrow— without reform, borrowing becomes not a bridge to growth but a cul-de-sac of dependency.

Quantitative easing has it's own problems. Usually, injecting huge amounts of (borrowed) capital into the economy is going to INCREASE inflation, not decrease it... But with the low degree of spending in Japan (people living here cannot afford things anymore), Japan is still at the risk of falling back into the deflation trap at some point in the future.

This is why an ultra-weak yen is a DISASTER for the economy with Japan being a net-importer with low spending and low productivity.

Weak yen/Rising import costs + current inflation + potential future deflation + lower exports .... someone is in for a rude awakening by the end of FY2027 if this continues.... and Takaichi's financial advisors want this to continue by all indication.

I'd give her no more than 18 months.....Who wants that bet?

PongoToday  03:30 pm JST

I'd give her no more than 18 months.....Who wants that bet?

Not me. She'll get nothing done without concessions to the opposition, fail to please anyone with what she does manage, and do absolutely nothing about the corruption and sleaze in the LDP.

quercetumToday  03:02 pm JST

Takaichi’s fiscal stance—borrow, borrow, borrow— without reform, borrowing becomes not a bridge to growth but a cul-de-sac of dependency.

actually it’s actually able to borrow money from itself as the yen is a reserve currency and can actually just print it.

as long as money is pumped into the economy and inflation doesn’t take off I can print as much as it likes. Its limit is limited by A) inflation and B) its ability to tax the money it printed back.

eg you print a billion, you spent it on producing assets, eg the new railway or some other asset schools, internet infrastructure or something, then the cost is recovered via taxation. It’s supposed to be part of MMT. The country is left with assets, the people can use it, paid by a few keyboard dots and dashes, then the money is repaid via taxation or basically you pay that loan over 40, 50 year bonds. Then they rinse and repeat. Have you ever wondered why every government on the planet is in debt? And if they are in debt, who financed the debt?

our pension funds, etc

f they did excellent, so long as the Japanese government understood that they are buying American, paying yen to the dollar, supporting American jobs, supporting American companies,

The great majority of JSDF military hardware is manufactured in Japan by Japanese companies. Even most systems that are based on US or European designs are manufactured in Japan under license but quite a bit of Japanese military hardware are original Japanese designs, not copies of other nation's weapons. The JSDF buys comparatively little from the US or Europe, but does license produce some of their systems in Japan. But you are not paying very many US or EU workers wages with your tax money. Most of it stays in Japan.

PM Takaishi needs to copy Thatcher's role model, Pres. Reagan, reduce wasteful Govt., invest in defense, cut taxes & regulations, incentivize private sector risk taking

During the eight years of the Reagan administration the US national debt increased from 31% of GDP to 59% of an even larger GDP. That is the legacy of the Reagan administration tax cuts and fiscal irresponsibility. To add insult to injury is successor George HW Bush managed to increase the national debt a further 10% to 69% of GDP in his four years in office. Bill Clinton and Congress after much acrimony brought the debt back down to 59% of GDP and ran fiscal surpluses for Fiscal Years 1999 and 2000.