Monday, November 29, 2010
Japan Passes $61 Billion Stimulus Package
Japan just passed a $61 billion stimulus package to help its struggling economy recover. With falling prices and weak exports, the hope is that the stimulus will help small businesses and increase consumer spending.
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3 comments:
http://owue370.blogspot.com/2010/10/japan-easy-does-it.html
This is an article that was posted a while ago about Japan taking action to weaken the yen. It seems increasing exports is a mutual goal of many developed countries in the attempt to recover their economies. I see this is a better way of increasing jobs than lowering taxes.
I think that creating more exports goes hand in hand with lowering taxes. As companies produce more to export they have to have some way to add employees, lowering taxes will help employers add more labor.
that's not true Scott. Tax cuts won't do and I'll explain why:
1. Companies will only add more labor when they think they can sell the products and gain extra profit out of hiring each worker. The economy right now is not spending enough to create economic growth and thus there is no evidence that these companies will add more workers because no one are buying them. Especially, when unemployment benefits are cut, there will be even more people paying less which will damage the economy. This is why increasing exports are the way to go to create jobs because companies need more workers to produce more.
2. If you read the book Free Lunch by David Cay Johnston you will see how the top 1% or 2% of the country will spend the extra money that they gain from tax cuts to buy personal stuff such as jets, yachts, fancy cars,and luxurious things and why they don't put money back in the economy? Same reason as above. NO ONE is buying.
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