Thursday, January 28, 2010

Japan goes for second stimulus package to revive the economy

When the economies of many rich countries are gradually coming out of the recession, Japanese economy is still suffering. So, Japanese government has taken an extra ordinary measure to announce second stimulus package in one fiscal year. Japanese fiscal year will finish on March and now, the government is going to inject nearly $80 billion. This is a lot of money but the government is helpless.
Consumer confidence in Japan is not improving at all and this is one of the main worries for Japanese government and the business people. Another problem is that a strong Yen is not helping the country in export. Many small companies are almost becoming extinct and even some big companies have suffered very big blows. So, the government is going to help those companies to survive and this matter is very important because unemployment is exceptionally high in Japanese standard at this moment.
I think that Japan has become very rich and one of the problems that this country is facing at this moment is that people have got habit to luxury. In the past, we have seen that Japanese people are very patriotic and they are capable of doing many sacrifices. So, I think that the government should do some research and try to talk to the people openly about the current economic problem.