– Japan’s Keynesian Demise: A Cautionary Tale For Our Times (David Stockman’s Contra Corner, Aug 15, 2014):
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The ragged Keynesian excuse that all will be well in Japan once the jump in the consumption tax from 5% to 8% is fully digested is false. Here’s the problem: this is just the beginning of an endless march upwards of Japan’s tax burden to close the yawning fiscal gap left after the current round of tax increases, and to finance its growing retirement colony. There is no possibility that Abenomics will result in “escape velocity” Japan style and that Japan can grow its way out of it enormous fiscal trap. Instead, nominal and real growth will remain pinned to the flatline owing to peak debt, soaring retirements, a shrinking tax base and a tax burden which will rise as far as the eye can see. Call that a Keynesian dystopia. It is a cautionary tale for our times. And Japan, unfortunately, is just patient zero.
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Whoever wrote this is full of denial and obviously does not read this site. The fall of Japan is due from Fukushima, not Keynesianism. Exports have fallen dramatically due to high radioactivity. Many countries have refused their goods, due to radioactivity.
Get real. Japan is dying thanks to the word they won’t allow their reporters to say…..they go to prison if they do…..Fukushima. It is nearly as bad around the world because there is no way to stop or fix it. If I were governor, I don’t know what I would do……..it is an ongoing disaster that will cause our demise and extinction……..not Keynesianism…..