Japan's Poor...

Article;

Weak Economy Large Budget Deficits will Force Japan to Default on Domestic Debt

 Comment;   Relative poverty in Japan is only next to the US among OECD countries and I think the government needs to address this issue. Inequality in Japan has increased in recent years due to slow economic growth the need is to reduce inequality in its economy. Japan is facing the same situation (not all) the United States is facing, depressed demand. The economy is in a deflating mode and to reflate it we need to infuse demand in the economy. But where is the demand? We all know that the demand constitutes the purchasing power in the hands of a buyer and not just the desire to buy a product. To buy a product we need to have money. And who does not have money but the desire to buy a product? The poor... We need to support the poor to reduce inequality in the economy and this will kick start the economy. We know about multipliers – any spending creates a multiple of that spending in the final. And the multiplier is highest when we put money in a poor man’s pocket because he almost spends all of it. Therefore, to sum up, Japan to reflate its economy should spend more on poor people and build demand right from the bottom…