The budget for the next year was set to boost the public enterprise sector while the welfare section is stringently suppressed. The most part of the increased tax income will be used for the former sector and for the export business. The people seem to be intoxicated by this apparently generous expenditure. This pattern has been repeated under the LDPJ government
since 1990s. The public enterprise boosting has been like a drug. It has been proved to end in failure. It heightens the economy for a while followed by a much more recession. Together with the side effects of massive quantitative easing by BOJ and the risen sales tax, the economy will surely drop very soon. It may even crash the economy considering of the astronomical amount of national debt.
The school children receiving the public financial support for education is steadily increasing. Fiftenn percent of the whole school children, that is the record high, are paid for that support a couple of years ago. On the other hand, the recipients of the financial aid for the poverty is also steadily increasing and has reached record high last year. More than 2 million people are receiving this aid. The major companies, mostly of export sector, are told to be willing to increase pay. Only originally rich people could enjoy it. The hiatus between rich and poor is increasingly widened now.
The cause of apparent deflation in Japan is believed to be due to the derease of working population and the increase of aged. That is the decline in demand. The policy of the government is clearly against any trial to improve this decline. In addition, this widened hiatus in the society will make it unstable.
When will the people wake up from this intoxication?