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I believe you are largely correct as to the aims. It is not so much a corporate welfare program as a social welfare program, with the money sluicing though cor
by JackFr 11y ago
I believe you are largely correct as to the aims. It is not so much a corporate welfare program as a social welfare program, with the money sluicing though corporate coffers rather than an extensive bureaucracy, with the added benefit of supporting the illusion that all is as it has ever been in Japan Inc.
But there are issues I think you would be foolish to ignore. First, the government largesse has to come from somewhere, taxing or borrowing. Taxing in the long term will become difficult, as the misallocation of capital contributes to shrinking that sector of the economy that can pay taxes. Borrowing kicks the can down the road, but with Japan's demographics a smaller less productive workforce will be saddled with that debt.