Newspaper Article

Japan hopes shopping coupons help

Sullivan, Kevin

1998

Overview

That's the theory behind the latest plan for reviving Japan's lethargic economy: giving shopping coupons to people younger than 15 and older than 65. Endorsing an idea promoted by an opposition party it is courting in parliament, the ruling Liberal Democratic party wants to hand out about $5.75 billionUS in shopping vouchers to try to stimulate consumer spending. Many analysts here say LDP Leader Keizo Obuchi has failed to demonstrate strong and determined leadership on economic matters since his election in July. While his government has concluded a plan to bail out Japan's ailing banking system and has plans to spend billions to stimulate the economy, Obuchi has not convinced international financial markets and world leaders that Japan is in control of its economic problems. [Ronald Morse], and other analysts here, say the LDP could spur consumer spending far more effectively by rolling back a consumption tax increase, from three per cent to five per cent, that took effect last year. LDP officials have said that despite the tax's dulling effect on spending, the government needs the tax revenue to help support its fast-growing elderly population.

• Publisher: Postmedia Network Inc
• Subject: Morse, Ronald / Obuchi, Keizo