[-AI-3.5]Did Abenomics contribute to grow Japanese economy?

Abstract

多くの人々がアベノミクスが日本経済の成長に大きく貢献したと信じていますが、それは本当に真実でしょうか？データから見る限り、そうした結論には至りません。そこで、アベノミクスが実際に日本経済に与えた影響を見てみましょう。アベノミクスは、第一次安倍内閣で推進された経済政策です。政策は、金融政策、財政政策、そして構造改革を含むアベノミクスの三本の矢と呼ばれています。目標は、アベノミクスが経済成長に貢献することです。残念ながら、アベノミクスは失敗しました。なぜなら、アベノミクスを実施する目的は経済成長を促進することではなく、むしろ財政赤字を増やすことであったからです。

Table of contents

• Introduction
• Abenomics - Overview
• Aggregate Demand and Supply
• Structural Reform
• Conclusion

-- CAUTION

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Introduction

Many people believe that Abenomics has greatly contributed to Japan’s economic growth, but is that really true? Based on the data, I do not come to such a conclusion. So let’s take a look at the impact Abenomics has truly had on Japan’s economy.

Abenomics - Overview

Did Abenomics contribute to the growth of Japan’s economy? Before I give the answer, let me first explain what Abenomics is. Abenomics is an economic policy promoted under the first Abe administration. The policy, called the three arrows of Abenomics, includes monetary policy, fiscal policy, and structural reform. The goal is to make Abenomics contribute to economic growth.

Unfortunately, Abenomics failed because the purpose of implementing Abenomics was not to promote economic growth but rather to increase the fiscal deficit. Furthermore, Abenomics led to an increase in Japan’s unemployment rate and inflation rate. Let’s consider why this happened.’

Aggregate Demand and Supply

Have you heard that Abenomics has been successful? Unfortunately, that is not true. Abenomics has hardly contributed to the Japanese economy. Let’s think about the impact on demand, supply, unemployment and inflation rates. In terms of demand, Abenomics caused inflation. Prices went up and had a negative effect on people’s purchasing power. Also, excessive fiscal expenditure as suggested by Abenomics policy increased demand, which resulted in price increases. On the other hand, in terms of supply, Abenomics delayed improvements in productivity. The lack of investment by companies caused commercial revenue to decline, and price increases could not be stopped. This hindered productivity improvements by companies, ultimately slowing down economic growth. We also need to mention unemployment and inflation rates. Abenomics policy raised unemployment and had a negative impact on people’s living standards. In addition, inflation rates were high, and prices skyrocketed. These issues demonstrate the limits of Abenomics’s contribution to economic growth in Japan. Unfortunately, Abenomics has not made a significant contribution to Japan’s economic growth.

Structural Reform

Structural reforms were positioned as the ’third arrow’ of Abenomics, containing essential components to revitalise the economy. The aim of these reforms was to increase competitiveness, promote growth, and improve the labour market. Implementation included various measures such as deregulation, tightened regulations, and reduction of barriers to entry into markets. However, these measures did not generate substantial economic growth at the time of implementation. In fact, the growth achieved by this policy was limited and investing in more effective policies such as basic income could have had higher economic effects and greater social benefits. Some economists argue that Abenomics was politically motivated towards maintaining vested interests. The Japanese government at the time stated that it should aim for more effective and planned policy execution to implement long-term and sustainable economic growth strategies. As an American economist, I wrote about this content to point out that the failure of Abenomics was inevitable and to prompt policymakers to choose more effective policies.

Conclusion

Abenomics in Japan aimed to implement measures for promoting long-term economic growth, but it ultimately failed. The government made desperate efforts to boost the economy, but with no significant results. Abenomics employed fiscal, monetary, and structural policies, but failed to bring about an economic recovery. Instead, the Japanese economy stagnated, and it must be said that the government’s efforts were unsuccessful.