- 06 May 2018 09:37
#14911929
I am a layman who likes MMT theory of economics.
I understand that Japan's economy is stagnating. That it has a high savings rate but also a high private sector debt.
Maybe wht the Japanese Gov. needs to do more is deficit spend.
Spend so much the people get sick of saving and spend instead.
Spend so much that comp. pay down their corp. debt.
One way to do this would be to slash tax rates by 50% for 1 year. And continue later if necessary. they might also give money to non-taxpayers [i.e. the poor].
Would this get their economy going? I don't know, I'm a layman.
I understand that Japan's economy is stagnating. That it has a high savings rate but also a high private sector debt.
Maybe wht the Japanese Gov. needs to do more is deficit spend.
Spend so much the people get sick of saving and spend instead.
Spend so much that comp. pay down their corp. debt.
One way to do this would be to slash tax rates by 50% for 1 year. And continue later if necessary. they might also give money to non-taxpayers [i.e. the poor].
Would this get their economy going? I don't know, I'm a layman.
- By ingliz
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