Third arrow, please
The prime minister is right to raise the consumption tax, but must do more to boost Japan’s growth
THE last time any politician dared to raise Japan’s unpopular consumption tax, people were beginning to use something called e-mail, the craze for Tamagotchi pets was spreading, and the economy was almost five times the size of China’s. It was 1997, and Ryutaro Hashimoto, then prime minister, wanted to rescue the public finances. The economy weakened sharply after the tax increase, and Mr Hashimoto was gone soon afterwards.
This article appeared in the Leaders section of the print edition under the headline “Third arrow, please”
From the October 5th 2013 edition
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