|Now apply multivariate analysis|
Thursday, January 28, 2016
Three Arrows Metaphor and Multivariate Analysis
Abenomics Arrows are all very well but…
Shin: First arrow: Fiscal stimulus to boost spending.
Taro: Shrinking population means fewer workers, fewer shoppers.
Shin: Second arrow: Government spends more on programs.
Taro: Then we have to increase the consumption tax which further dampens consumer spending.
Shin: Third arrow: Structural reform: lower company tax, put more women to work.
Taro: Decreasing taxes on the wealthy takes from the less wealthy. And can we really turn around cultural attitudes to women in the workforce just like that?
How about a fourth arrow? Increase taxes on the wealthy. Thomas Piketty has data to support that approach.