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Monday, November 17, 2014

Japan Slides Back Into Recession

Japan has slid back into recession after reporting a third quarter fall in GDP of 0.4%.

Apparently this has "shocked" analysts and those who claim to be experts in economics.

Why?

Japan introduced a sales tax earlier this year which, quite obviously, would have (and indeed did) negatively impact consumer spending.

For reasons that only Prime Minister Shinzo Abe can know, the sales tax hikes (another is planned) were meant to bring the economy out of its decades long slump.

Quite why increases in consumer taxes were meant to stimulate the economy is beyond me, even more so why "experts" didn't see the increase in taxes as a threat to any form of nascent economic recovery!

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