The Nikkei stock index hit the 15,000 mark for the first time in five years yesterday, another sign that the Japanese economy is finally on the mend.
With all the good economic news coming out of Japan, there is no doubt in my mind that rising taxes will be just around the corner.
For the last ten years, the newspapers have been running headlines that read: ”Japan recover just around the corner.”
And it never happens. And it will never happen, no matter what that Bloomberg columnist in Tokyo William Pesek says. Until Japan Inc makes huge reforms in the entire culture and country, there will be no economic recovery. Japan is the sick man of Asia. Tell that to William Pesek.
If Japan really wants an economic boom, they’ll do away with things like price controls on pharmeceuticals, as well as the enormous income taxes against rich people.
Japan actually doesn’t need huge changes for economic growth, very slight ones would be enough to take it out of recession. Huge reforms may be beneficial in some areas however its hard to say with drastic changes.