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Japanís economy shrinks as tax hike hits spending
Associated Press ^ | Aug 13, 2014 1:00 AM EDT | Yuri Kageyama

Posted on 08/12/2014 10:26:58 PM PDT by Olog-hai

The Japanese economy shrank at an annual pace of 6.8 percent in the second quarter after spending got slammed by a sales tax hike that kicked in from April, government figures showed Wednesday.

Japan’s gross domestic product, or the total output of goods and services, also contracted 1.7 percent during the April-June period from the previous quarter.

The decline in GDP was the worst since the March 2011 tsunami and quake disaster in northeastern Japan. In the first quarter of 2011, Japan’s economy shrank at an annual rate of 6.9 percent.

The weak figures were expected as consumers and businesses had front-loaded spending in the first quarter to beat the April 1 increase in sales tax. Economists expect spending to pick up again in coming months. …

(Excerpt) Read more at hosted.ap.org ...


TOPICS: Business/Economy; Japan; News/Current Events
KEYWORDS: consumerspending; economy; salestax; taxhike

1 posted on 08/12/2014 10:26:58 PM PDT by Olog-hai
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To: Olog-hai

6.8%? If that continues, that’s a DEPRESSION!


2 posted on 08/12/2014 10:31:42 PM PDT by PGR88
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To: Olog-hai

bttt


3 posted on 08/12/2014 10:36:04 PM PDT by BenLurkin (This is not a statement of fact. It is either opinion or satire; or both.)
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To: PGR88
6.8%? If that continues, that’s a DEPRESSION!

Well then, there is only one thing to do, raise taxes some more.

4 posted on 08/12/2014 11:11:47 PM PDT by VRW Conspirator (The next DNC convention will be spoken in Spanish; Press 1 for English)
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To: Olog-hai

I can’t remember where I saw this posted: Japan’s economy — A bug in search of a windshield.


5 posted on 08/13/2014 12:29:19 AM PDT by Paul R. (Leftists desire to control everything; In the end they invariably control nothing worth a damn.)
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To: Olog-hai
“Japan’s gross domestic product, or the total output of goods and services, also contracted 1.7 percent during the April-June period from the previous quarter.”

Also ? -6.8% is “annualized” Q2 figure, forecasts for the whole 2014 are around +1%, so it is not as terribly bad... Pretty much usual stuff in case of Japan.

6 posted on 08/13/2014 4:52:25 PM PDT by Grzegorz 246
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To: 1010RD; Wyatt's Torch; Lurkina.n.Learnin; Chgogal
consumers and businesses had front-loaded spending in the first quarter to beat the April 1 increase in sales tax. Economists expect spending to pick up again in coming months.

Ah.  So if the gov't takes away more of everyone's money it doesn't really mean folks will have less money to spend elsewhere...

7 posted on 08/14/2014 5:12:43 AM PDT by expat_panama
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To: expat_panama

Well, spending comes from either earnings or borrowings. Reduce either one and you get... wait for it... less spending.

Borrowing is just betting on future earnings. What’s happened here is government is “borrowing” taxes so consumers have to borrow spending from the future to pay for it.


8 posted on 08/14/2014 5:16:27 AM PDT by 1010RD (First, Do No Harm)
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To: Olog-hai

Japan’s economy is still centrally planned by MITI, no?


9 posted on 08/14/2014 5:18:13 AM PDT by 1010RD (First, Do No Harm)
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To: expat_panama

Probably a combination of the tax and bad weather. Yea, that’s it, bad weather.


10 posted on 08/14/2014 5:27:56 AM PDT by Lurkina.n.Learnin (It's a shame nobama truly doesn't care about any of this. Our country, our future, he doesn't care)
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To: Lurkina.n.Learnin
Yea, that’s it, bad weather.

lol!!! right, global warming...


11 posted on 08/14/2014 5:49:55 AM PDT by expat_panama
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To: 1010RD
government is “borrowing” taxes so consumers have to borrow spending from the future to pay for it

That makes perfect sense to me.  Horrible gov't policy but it makes perfect sense.

12 posted on 08/14/2014 5:54:55 AM PDT by expat_panama
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