Thursday, January 28, 2016

Three Arrows Metaphor and Multivariate Analysis

Now apply 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.

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