Abenomics Is Not Easily Fixable in Japan's Economy

Recently, in Japan, people are starting to question the policies of Shinzo Abe's "Abenomics", seeing as the Japanese economy has contacted numerously in the past few years. Abenomics describe the economics policies enacted during Abe's term as prime minister since 2012. They include fiscal stimulus, monetary easing, and structural reforms. The potential growth rate is around 0, so any small shock can put Japan into recession, according to the chief Japan economist at JP Morgan & Chase, Masamichi Adachi. Abe has been criticized for inappropriately raising the sales tax, which disincentivized people to spend money in the economy. In addition, Japan's GDP is the same as it was in the mid-1990s, according to the article. We also know that another thing that could possibly disincentivize workers and consumers is the fact of respecting your elders in Japan, which has a good underlying tone, but it also does not motivate people to work harder if they are younger, or produce more GDP for the economy. With more and more people skeptical of Mr. Abe's policies, he will have to change his policies in order to not have Japan recess even more. One proposal may be to implement more quantitative easing into the Japanese economy, as well as lower the sales tax, encouraging people to spend more into the economy. http://www.nytimes.com/2015/10/26/business/international/japans-struggling-economy-finds-abenomics-is-not-an-easy-fix.html?ref=business&_r=0