Japan’s Cabinet approved a massive 21.3 trillion yen stimulus this week, aiming to ease inflation and spark growth. At around $136 billion, the plan includes tax cuts and subsidies designed to put more cash in pockets and encourage spending 💸.
Supporters say the measures could help curb rising prices that have pinched household budgets. But critics argue it may do more to boost Prime Minister Sanae Takaichi’s profile than tackle persistent inflation. With the debt-to-GDP ratio hovering around 240%, big tax breaks could push public debt higher, weaken the yen, and even stoke price pressures 📉.
As Japan navigates slow growth and global economic headwinds, the effectiveness of this stimulus will be closely watched. Will the extra spending energize the economy, or will it leave Tokyo with an even bigger bill and a weaker currency? Only time will tell ⏳.
Reference(s):
cgtn.com
