Japan’s prime minister hopes 1.3-trillion-yen stimulus will boost flagging economy

The Japanese prime minister, Shinzo Abe, yesterday signed into law a 2.3 trillion yen ($490 billion) stimulus package for his economic policies. The bill will be divided into two parts — 1.3 trillion yen will go toward investments in infrastructure, and 1.2 trillion yen will be devoted to lowering the corporate tax rate. The nation has also promised to maintain structural reforms, including easing regulations on financial firms and streamlining regulations on companies, and thus making them more attractive to overseas investors.

Japan is hoping that by propping up the sagging economy, Japan will be better able to push through the pain of the country’s aging population and lower wages. Some of the plans—like spending and tax incentives—depend on additional funds being collected by the government and are essentially just loan sharks hitting up consumers and investors for more money to keep going.

Read the full story at The Telegraph.

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