‚Japanese Prime Minister Fumio Kishida said on Thursday the government will spend over 17 trillion yen, or $113 billion, on a package of measures to cushion the economic blow from #inflation, which will include tax cuts.‘
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https://www.cnbc.com/2023/11/02/japan-unveils-113-billion-package-to-cushion-inflation.html
Note to self... Don't keep too much yen after #nostrasia
When the government runs deficits, tax cuts are neutral against inflation but good overall because the money would be spent anyway, but at least it won't be misallocated by the government and their cronies. So, if they were simply counting the taxes they will stop collecting and misallocating as "spending", that'd be OK.
The problem is that's not what's going to happen because they will not just stop collecting $13 B, but a much smaller amount. They will keep issuing debt and having the BoJ buy it with freshly printed yens which is the real problem.
