Sunday, December 21, 2014

Japanese financial deficit is in danger



I wonder why Japanese people are indifferent to their own country’s financial deficit. It accumulates approximately 1,040 trillion yen (87.2 trillion USD). You can imagine how critical the amount is. As Japanese GDP is about 500 trillion yen, the deficit is equivalent to the double size of the GDP, which is one of the worst country among the major countries.

The Prime Minister Shinzo Abe says it is OK but I don’t believe so. He also states that the financial deficit will be improved in the next summer but the hope must be too optimistic to be believed.

Why the deficit grows such a huge amount? The answer is simple. The LDP did not take the effective solutions on the issue, nevertheless IMF or other finance experts are warning many times.

I think there are only few solutions left for the issues. One of them is to cut the government’s cost dramatically. Another solutions is raising taxes so as to absorb the deficit. What do you think it the best way?

No comments:

Post a Comment