Sep 15

A member of the now opposition LDP who appeared on a news show today made a comment pointing out the plan of the DPJ that is characterized by a massive increase in welfare spending without tax increases is anything but realistic. He just stated the obvious. It's painfully apparent to everyone that the welfare spending proposed by the DPJ would not be feasible without the government issuing more government bonds to compensate an unavoidable huge budget deficit. However the DPJ pledge they will not consider raising consumption tax for the next four years. It seems obvious even to lay people that just cutting "unnecessary" spending that they blame on what they call "bureaucrats' empire" would in no way be sufficient to make the extra welfare money needed. If they are envisioning a welfare state like those in Europe, they should act in a more responsible way. A hike in consumption tax would be unavoidable. It's time to admit the obvious.
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