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| 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?
_________________
Voice-over
How about a fourth arrow?
Increase taxes on the wealthy. Thomas Piketty has data to support that approach.
Three arrows. Good metaphor.
But it cries out for multivariate analysis.
…
