The headline story here points out very clearly why Japan has two lost decades behind it. The country tries to gin up growth via fiscal and monetary stimulus when it lapses into recession. A gaping hole opens up in the government's books. Then the Japanese stomp on the brakes by raising taxes and recession comes roaring back. This is exactly the fate that awaits the United States if it continues on the present path. Most pundits fail to understand this and the article below is a prime example of bad economic opinion masquerading as reporting. It doesn't frame the issues well and is just a complete mess.
Japan Lifts Sales Tax to Tackle Debt - WSJ.com
The reporting on this article is all wrong and shows reporting bias. The key to look at here is that Japan is in a d...
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Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.