Saturday, January 12, 2013
Japanese Government Will Spend ¥17,166,666 (about $193,333.33 USD) Per Job to Create Jobs! I Want That Job!
The government in this country is leading us to financial catastrophe. You can't make this stuff up.
I can't believe that the people - as well as financial commentators in Japan -aren't up in arms about the latest financial plan from prime minister Shinzo Abe. I can see how the average person couldn't figure this out, but it is simple math. How could most commentators on economics in Japan be so clueless that they can't see the glaring problem with this latest plan?
First let's look at the plan.
The Japanese government will spend 10.3 trillion yen ($116 billion) to drive a recovery from a recession in Prime Minister Shinzo Abe’s first major policy initiative to end deflation and boost growth. Enlarge image Shinzo Abe, Japan's prime minister, speaks during a news conference at the prime minister's official residence in Tokyo, Japan. The Japanese government will compile a 13.1 trillion yen extra budget to help pay for the stimulus program, according to the statement.
About 3.8 trillion yen will be for disaster prevention and reconstruction, with 3.1 trillion yen directed to stimulating private investment and other measures, according to a statement released today by the Cabinet Office. Extra spending will increase gross domestic product by about 2 percentage points and create about 600,000 jobs, the government said.
The article shows a construction worker and some other feel good images. But, like I said, the problem is simple math, folks.
How could the government spend $10.3 trillion yen (about $116 billion dollars) on creating inflation (thereby destroying the value of the currency) and 600,000 jobs?
First off everyone knows that the government does not create jobs. The government can only take money from the productive part of society (taxation of private industry) and redistribute it to the non-productive part of society. But my issue is not with this point.
The point is this, and I said it is simple math: How can the government justify taking this money from private industry in order to create jobs at the cost of ¥17,166,666 (about $193,333.00 dollars) each?
How can they justify that? Wouldn't it be MUCH better to allow private industry to keep that money and hire their own people?... Oh, yeah, I forgot... If they don't take the tax money, then they can't pay their middlemen friends.
Did I say that Japan's economy is doomed? Where are the reporters and economists to point out this problem that cannot be more difficult than third grade math...
That's why math is such a bitch, the numbers tell the truth.