Mr. prime minister, are you serious?
Japanese government has decided to cut down the number of to-be-hired public workers for the next year.
This simply means 4500 jobless people will lose opportunity for job.
After the economic bubble bursted, the government has spent money to support the citizens' stagnated consumption for economic growth.
Japanese people haven't recovered from the shock and still unlikely to spend a lot.
Why would a government cut the expenditure when a country is under this kind of situation?
The government needs to fill the gap between Supply and Demand in order to stabilize the economy.
Japan will run into disastrous recession when the government; only one sector spending among the companies and citizens; cease to spend money.
How dare you say "Japan will go bankrupt"?
Japanese media and comentaters love the word "bankruptcy".
They speak as if Japan would go bankrupt unless the government lowers the expenditure.
Because of the repeated mention to the economic depression, Japanese people fear to spend money in preparaion for emergent expense. Although the Japanese by nature have the disposition to see thrift as good virtue, current Japanese people almost frantically fear to spend money. Japan has as much as 1 quadrillion yen of debt which is close to 10 trillion US dollars. Japanese government do have tremendous amount of debt.
People think this way DEBT=BANKRUPTCY because the image is so prevalent.
Japan't national debt has doubled in these 10 years, but it's not bankrupt. Don't you think it's strange judging from the equation?
If japan owed debt to foreign countries, the theory can be the case.
However, more than 90% of national bond belongs to Japan, this means that "Japanese" banks and investers are buying the national bonds using "Japanese currency". What is more,all most all of the rest is issued in Yen too.
Let me give you a good example of DEBT≠BANKRUPTCY.
Zimbabwe is a country under whats is called "hyper-infration," but the country hasn't lost its sovereignty yet.
This is simply because the country do not owe debt to foreign countries in foreign currencies. As long as the country is purely driven by Zimbabwe dollar, it won't go bankrupt. The Zimbabwan government owe debt to no one but Zimbabwans. So no matter how painful the situation might be, it won't go bankrupt because the country has only to issue the national currency however much needed.
I suggest this extremely simplified equation. Debt in foreign currency=BANKRUPTCY
Greece went bankrupt. Briefly speaking, the country couldn't issue bond when needed.
Increased amount of EURO in a country affects all the members, thus each country possesses restrained right to issue EURO. EURO members who abandoned ones' original currrencies virtually do not have national currency in its true sense. They have to be dependent on quasi-foreign currency for survival as long as they shall live.
EURO has good aspects too as you can see in Germany, but Greece couldn't benefit in the same way and suffered instead.
Let's return back to Japan's situation.
Why is it possible that Japanese banks buy so much bond? Because there's abundant money saved in banks both from people and companies. Householdings and companies have enough, almost excessive amount of savings. They have only to invest the money, which will soon decrease the amont of national expenditure.
Please remember that they have only to SPEND MONEY instead of the government. I'm not economy major, so I don't know the best balance between the government, companies and people, but at least I'm sure there's inbalance of expenditure among the three.
Company and househyolding sectors need to spend money to decrease the governmental expenditure, and there's no need to fear expenditure since there's absurdly sufficienct amount of money in banks. My impression is that the burned-out from the bubble frantically fears deficit.
Again, Japanese people do not owe debt to foreign countries. It's circulating within Japan.
Government ↓↓ ＋ Companies ↑ ＋ Householdings ↑ ＝ ±0 Such a simple equation isn't it?
Actually Japan earns foreign currency every year thanks to its strong industry. That means
Government ↓↓ ＋ Companies ↑ ＋ Householdings ↑ ＋ trade surplus ↑ ＝ ↑
This is the fact, this is not an inconvenient truth.
So, the government and the media have only to broadcast the truth. No need to broadcast distorted info like some other countries - what a desirable situation!
Why isn't it acknowledged by peolple?
I assume there are certain people in Japan who don't want strong Japan.
Feel at peace and start spending, when the demand catches up with the supply, GDP will start rising again.
It is horrible that so many people think the government owe debt to foreign countries at present.
The media do not give us proper information. So misleading and treasonable.
I know I have to admit that the irresiponsibility has resulted from indifference to the media and people's lack of thinking.
Every time I have to mention the media...haha...ha...
As I told you I'm not an economist, please be lenient about mistakes.
"Then why did you post this"
I just thought "I need to write something about this" out of passion.
I'll probably revise this post for more accurate information.