Tuesday, July 7, 2015

Fiscal policy of the Lost Kingdom

Such as when the accounting field has got to the president in the enterprise,
"How to expand sales, or stretch a profit?"
The cry,
"How to reduce the cost, or stretch a profit?"
To the challenge, single-mindedly to reduce the cost, eventually even decreased to go (a result, further cost reduction) profit there frequently to be thrust into a vicious cycle. At a minimum, the required cost even checked strictly, various "procedures" is increased, essential of operating activities I become neglected.

When Watakushi was in certain Canadian large companies, is thoroughly a profit to quote research, authority becomes profusely increase of "department investigate", and have to take your mood of the director of the department, and also estimate it has led to a situation where it is not put out.

Certain television stations of Japan, also a result of the accounting field has got to the president, each department seems to have been requested to "cost uniform 10% reduction". Everyone becomes a frenzy to cut costs, will not make a decent program, the TV station I have slid down from the seat of viewer ratings top.

However, that President companies fall into "cost savings supremacy", this well, it does not affect the overall Japan nation. I am sorry for those of employees, but it is not in the ordinary to win cost savings principle's paranoid in-house politics.

Problem, when done for the ↑ This nation, a huge number of people that the people will be in the fact that adversely affected.

"Fiscal consolidation of numerical targets in the Council to forego" boned policy "draft, PB surplus is intermediate target set
http://www.sankei.com/politics/news/150622/plt1506220033-n1.html
Government 22, Economic and Fiscal Advisory open meeting (chaired by Prime Minister Shinzo Abe) and industrial competitiveness meeting (same), draft guidelines "large-boned policy" and a new growth strategy of economic and fiscal management, which aims to end of this month of the Cabinet decision It was presented. Basic fiscal balance (primary balance, PB) of the 2020 fiscal year in these large-boned policy showed "economic and financial recovery plan (tentative name)", which aims to profitability, the number in expenditure suppression goal is to saw off.
Prime Minister Shinzo Abe in the council "to ensure the country's confidence in the financial, to adhere to the fiscal consolidation goals," he said.
The "economic and financial recovery plan" three years of up to 30 fiscal year in and positioned as "intensive reform period", intermediate target to decrease from 3.3% of the 2015 fiscal PB deficit to gross domestic product (GDP) ratio to about 1% the set. If it is insufficient to achieve the targets is carried out at additional measures.
Numerical targets it was not included in the control expenditures. However, continued Based on the track record of the Abe administration, which kept spending increase to about 1.6 trillion yen in the past three years of effort, in terms of was "only a guideline" (Cabinet Office), "the keynote until 2006 the difference then was with to go. " To achieve the plan, we have established a Expert Committee under the Advisory Council, also decided to manage the progress of the plan. (Koryaku) "

You have commentary in recent channel cherry program, the PB is not only one method of fiscal consolidation (reduction of the debt-to-GDP ratio of the government). Whether to fiscal consolidation,
"Primary balance (PB)"
"Government bond interest rates"
"Growth rate of nominal GDP"
Of it is determined by the three combination. When would PB deficit, government bond interest rates are low, if is sufficient nominal GDP growth rate, fiscal is to soundness.

In other words, tools, or there is only one PB of means, and always listed in the "target", the current Abe administration is the nonsense pole ball.

That said, it more than terrible is in the Liberal Democratic Party, and was trying to put on in addition to the PB goal until the "target of spending cuts," "large-boned policy". Result, referred to as a "guideline" of expenditure increase, well target ones enters you do not know, it became the iridescent settled.

Head is sore.
Previously, the dispute of official residence side and the Liberal Democratic Party side over the financial discussion,
"And useless guy, more bad guy of discussion"
I have expressed as, in fact,
"Really a useless guy, even Totetsu without any of the bad guy discussion"
I there a feeling that.

Yet government (Cabinet Office) is in deflation countries have admitted that there is a deflationary gap, because is not trying to Tateyo the goals of reduction PB goals and expenditures, it does not become a story. After all, even the Abe administration is also Liberal Democratic Party, is incorporated into the Ministry of Finance as well Democratic administration, it is likely that the rush the routes of fiscal policy of the Lost Kingdom.

To begin with, more than the definition of fiscal consolidation is a "reduction in the debt-to-GDP ratio of the government", if you make a financial goal, it is not impossible other than debt-to-GDP ratio of government.

That said, reality PB goal is set to, even more spending cuts specific "guideline" is also entered, you will want to go tied the fiscal policy of the future of our country. That Japan's fiscal 2015 or later come back to deflation, I believe or not than was substantially determined by the "fiscal policy of the Lost Kingdom" this.

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