Japanese stagnant economy
Japan's enocnomy has been stagnant for more than a decade and a half, aprticularly for the past 6 years especially during the Koizumi-Takenaka days, under the so called Strucutural Reform which has no academic nor facual supporting grounds.
Japan's GDP reached 521 trillion yen in 1997, but it has been squeezed to a mere 505 trillion yen in 2006. GDP deflator has been negative since 1998 when fiscal susterityu and tax hike were implemented in the name of fiscal reform. Especially huge tax hike imposed in 1997, an increse of consumption tax from 3 to 5% scaled back public investment and a total burden of 13 trillion yen was transfered on the shoulders of public spending.
Under the Obuchi Cabinet, a positive fiscal policy was pursued but the sudden demise of the Prime Minsiter did not bring the fruits and only the debt ratio was increased. Koizumi's Structural Reform, which is totally without any theoretical basis, squeezed the whole Japanese economy, nad reduced its investment expenditures nad cut back huge amount of local subsidies and public works budget. This accelerated the defation, and downward spiral of prices, and tax revenue naturally shrinked. Huge amount of assets leaked out of the country, into the hands of Wall street financial brokers. Koizumi's structural reform was not a Reform but only to squeeze the national wealth of Japan.
In the days of Koizumi cabinet, especially Takenaka policy, public expenditure was maitained at the same level of a decade ago. Koizumi reform totally destroyed the upswing brought by the Hashimoto cabinet policies in ;which the economy p;icked up and tax revenue incresed to 51 trillion in 2000.
Medical expenditures and other social welfare expenditures were also squeezed and workers salary decreased in proportion to the dwindling national wealth.
Strucutural Reform almost destryed Japan's economy, and every economic indicators deteriorated.