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Thread: Abenomics is working

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    Politics.ie Member seabhcan's Avatar
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    Default Abenomics is working

    BBC News - Japan's economy shows recovery signs in boost for Abe

    Japan is heading to 3.5% growth this year, up from 1% before the new policy of Abenomics was begun. Abenomics is basically the radical idea that government should spend money during a recession, rather than cutting back and making the recession worse.

    Oh, and the Eurozone is still in recession due to attempting the opposite of Abenomics.

    Can Abe save Europe too? Will Germany allow it?

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    History will record with the greatest astonishment that those who had the most to lose did the least to prevent its happening.

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    Politics.ie Member Ren84's Avatar
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    Impressive. Certainly some lessons for us Europeans. Of course the Paulbots will go crazy at the idea of good old fashioned Keynesian economics, but fek em sure.

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    Politics.ie Member Amnesiac's Avatar
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    Future taxpayers will have to pay back this spending in higher taxes and/or reduced spending. The Japanese is simply shifting consumption though time and placing the burden on future citizens. Total debt rises to facilitate the rise in GDP. Keynesians must explain why this leads to a better outcome than no stimulus and lower debt. What are the costs of doing nothing? Is there a unique problem which only government stimulus can resolve?

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    Politics.ie Member seabhcan's Avatar
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    Quote Originally Posted by Amnesiac View Post
    Future taxpayers will have to pay back this spending in higher taxes and/or reduced spending. The Japanese is simply shifting consumption though time and placing the burden on future citizens. Total debt rises to facilitate the rise in GDP. Keynesians must explain why this leads to a better outcome than no stimulus and lower debt. What are the costs of doing nothing? Is there a unique problem which only government stimulus can resolve?
    No - the old will pay now via inflation. But money is not a zero sum game. If printing money gets people into work, and spending money, and consuming more, and thus creating more employment, everyone benefits and no one is worse off. Money is only valuable when spent.

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    Politics.ie Member Amnesiac's Avatar
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    Quote Originally Posted by seabhcan View Post
    No - the old will pay now via inflation. But money is not a zero sum game. If printing money gets people into work, and spending money, and consuming more, and thus creating more employment, everyone benefits and no one is worse off. Money is only valuable when spent.
    Japan is not reliant solely on monetary stimulus. They have a very large fiscal deficit. Somebody has to pay that back down the road. Today's taxpayers are not bearing the full cost of these measures. That may be permissible if today's "shot in the arm" improves tomorrow's prospects for everyone. You need to explain why it does. Why is government action preferable to inaction?

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    Politics.ie Member seabhcan's Avatar
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    Quote Originally Posted by Amnesiac View Post
    Japan is not reliant solely on monetary stimulus. They have a very large fiscal deficit. Somebody has to pay that back down the road. Today's taxpayers are not bearing the full cost of these measures. That may be permissible if today's "shot in the arm" improves tomorrow's prospects for everyone. You need to explain why it does. Why is government action preferable to inaction?
    They tried doing nothing and it didn't work. They tried nothing for the last 20 years.

    Lost Decade (Japan) - Wikipedia, the free encyclopedia

    Now they are trying something.

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    I'm not even going to bother, time will show the truth,

    Japan is a ticking bomb,

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    Politics.ie Member seabhcan's Avatar
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    Quote Originally Posted by Ribeye View Post
    I'm not even going to bother, time will show the truth,

    Japan is a ticking bomb,
    At least its ticking. Europe's clock seems to have stopped.

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    Politics.ie Member Amnesiac's Avatar
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    Quote Originally Posted by seabhcan View Post
    They tried doing nothing and it didn't work. They tried nothing for the last 20 years.

    Lost Decade (Japan) - Wikipedia, the free encyclopedia

    Now they are trying something.
    That's not even close to being true. Look into Japanese stimulus policies over this period.

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