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Strategies & Market Trends : Asia Forum -- Ignore unavailable to you. Want to Upgrade?

To: Henry Volquardsen who wrote (6979)	10/6/1998 2:02:00 PM
From: Robert Douglas	Respond to of 9980

Henry and Sam, Of course you are both right about the hurdles facing the Japanese and increasing domestic spending. On the other hand Japan hasn't really tried anything of substance yet, so we just don't know how it would work. I think they should start by using one of America's favorite methods of coaxing spending. Subsidize the homebuyer. The last few years have seen a huge drop in housing starts. This is a relatively easy target for governments and tax breaks should be given to homebuyers. You could also subsidize families with children, couching it in language that stirs the patriotic soul. “It's for the children, it's for Japan's future”. Of course a nice tax cut would work wonders if it were directed at spenders. It's difficult to believe that after a lengthy recession, that there isn't some pent-up demand in the Japanese economy. I think that it just requires the right tool to free it. -Robert