経済｜給付金は消費減税より効果的と首相 / Economy | Prime Minister says subsidies are more effective than reducing consumption tax.

Summary

Prime Minister Ishiba emphasized during a press conference after the G7 summit that the cash payments he proposed as a measure to combat rising prices are much more effective than consumption tax cuts.

Regarding the securing of approximately 3 trillion yen in funding, he indicated that he plans to allocate surplus tax revenue, but expressed concerns about the current fiscal situation. Despite facing criticism from local governments regarding the cash payments, the Prime Minister is advocating for their importance.

Dialogue

This dialogue is fictional and based on the article.

Log: Hey Chako, the Prime Minister said that cash benefits are more effective than consumption tax cuts. What do you think?
Chako: Really? Are cash benefits that great? But isn’t that just handing out money?
Log: Yeah, I guess the idea is that directly giving out money encourages spending.
Navi: It’s believed that cash benefits stimulate consumption, positively impacting the overall economy.
Chako: I see! But I’m also concerned about where the funding will come from.
Log: That’s true, they mentioned needing about 3 trillion yen, and the Prime Minister said securing that funding would be difficult.
Navi: The plan is to cover the funding through increased tax revenue, but there are still challenges with the actual financial situation.

Admin’s Note

The Prime Minister’s recent statement indicated that cash handouts are more effective than consumption tax cuts as a measure against rising prices. Notably, his comments on the difficulty of securing funding may have implications for future policy management. As Chako has pointed out, it’s essential to discuss various perspectives, including the actual economic effects of receiving cash handouts and the dissatisfaction from local governments. I would like to pay close attention to future developments, including the expectations of the public.