Japan Press Weekly

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2016 July 27 - August 2 TOP3 [ECONOMY]

Additional economic stimulus measures highlight Abenomics’ failure

The Abe government and the ruling parties are working out new economic stimulus measures. However, the measures clearly show that Prime Minister Abe Shinzo’s economic policies have come to a dead end.

It is reported that the cost of the new economic plan amounts to over 28 trillion yen, the largest since the second Abe administration came into office at the end of 2012.

During the campaign for the July Upper House election, PM Abe repeatedly claimed that his economic policies called “Abenomics” have borne fruit by citing only favorable statistics. However, the fact that his government has no option but to take desperate measures shows that the recovery of the real economy has yet to be achieved.

As financial resources to be used for this stimulus package are very limited, the government is considering issuing additional government bonds for construction and fiscal investment purposes. This will further increase the country’s debt and the general public will have to pay the price in the end.

The new package also contains many unnecessary large-scale projects, such as moving ahead with the construction of a maglev train line known as the Linear Chuo Shinkansen.

Past related article:
> Gov’t and BOJ surveys show harmful effect of Abenomics on people’s livelihoods [July 13, 2016]