[QUOTE=TinyRedLeaf;2222073]
Quote:
|
A result of pork-barrel politics actually. Or, more specifically, heavy lobbying by local construction companies
|
.
The idea was to attract urbanites from the 6 major cities [Tokyo, Yokohama, Nagoya, Osaka, Kobe and Fukuoka] to move to the smaller cities, like Sendai, Aomori, Fukui, ...
Quote:
|
The idea of infrastructure spending to boost an economy is sound (Singapore, for example, took advantage of the construction slump in the 1990s to expand its mass-transit rail network)
|
,
Everytime there's a downturn, there's a new line.
After the 80's crisis: NS, EW Lines
After the 90's crisis: NEL
Around Sars: CCL, Jurong/Marina expansions
Right about now: Downtown Line
Pretty smart.
Quote:
|
but its implementation can easily go awry.
|
True. Look north. Malaysia.
Quote:
|
Geithner isn't completely wrong: Japan's domestic consumption is very low compared to its export revenue. That's why Japan is currently in its worst recession since the 1974 oil crisis, because its export markets are in severe decline.
|
I guess a recession hurts consumer sentiment.
Quote:
|
Japan's problem was that its government took too long to jump-start its economy after its asset-bubble burst. As a result, the country got trapped in a deflationary cycle, discouraging Japanese from spending. Why should they? If prices are falling year-on-year, you'd become richer just by holding on to your cash, even at near-zero interest rates.
|
Quite a insightful view.
Quote:
|
This continues to be a problem in Japan. Its fragile recovery over the past three to five years comes from its exports, and since that has collapsed, so has its economy.
|
Right on the spot.