Recent trend of Japanese economy and a prospect for its future

Since the 1990's Japanese Economy has suffered a long depression after the collapse of bubble economy. Accelerated economic globalization has worsened it. Government's deficit spending for economic recovery and maintenance of social security has not created recovery or increased revenue. It has newly created acumulated deficit which threatens to explode before long. As increase of tax revenue can't be expected under present weak economic growth,tax increase policy is inevitable. And as increase of tax burden on firms will accelerate their movement to escape abroad,the only solution at present is increase of tax burden on households. But we should note that this is a measure to be taken until the developing countries catch up with the developed ones in terms of wage level. After this catch-up increase of tax burden on firms will be again an attractive policy alternative.

economic grouth

governmet deficit

economic globalization

citizens' welfare state