BOJ Iwata: Japan can withstand tax hike pain

Comments (1)
stonewall_lee wrote:

Iwata underestimates the effects a 60% increase in the consumption will have on spending in general. Consumers will be hurt badly, and capital expenditures are also subject to the increased taxation. Many companies are making capital expenditures now, ahead of the 60% tax increase. After the tax hike, all expenditures will drop. Purchasing power will be eroded and morale will dip. No Keynesian ‘stimulus’ can make up for decreased spending power of corporations and consumers.

Feb 06, 2014 1:22am EST  --  Report as abuse
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