Question

What are some policy suggestions for Japan to promote economic success today?

Answer 1

Some policy suggestions to promote economic success are as follows:

1.  Promote green investments among the private sector, by applying higher level of carbon tax. It will make private sector to spend on clean and green technologies that will stimulate the economic activities. It will increase the overall capacity of the economy and LRAS will shift to the right.

2. Decrease the tax applied on consumers and increase spending programs for those who really need it. It will create new  jobs and purchasing power of the middle and lower income group will increase. It will further stimulate the economy and growth in economy will take place.

3. Reorganize the agriculture sector and increase spending for the manufacturing sectors as well as these sectors increase capacity of the economy and jobs are also created.

4. Enter into bilateral and other trade agreements with those nations who require growth and demand technology that can be supplied by Japan. These developing or poor nations have demand and Japan has supply. If both type of nations come together, then it will be an economic success for everyone.

5. Find trading opportunities with other nations with a technological know how support. It will give competitive advantage to Japanese firms and they can compete well in international market.