🔥 Hey there, Asia Gen Z & Millennials! Japan’s new PM Sanae Takaichi just rolled out “Sanaenomics” – a plan of tax cuts, industry subsidies and a major defense boost. But what’s really at stake? Let’s dive in! 👇
Where’s the money coming from? 💸
Sanaenomics bets on big public spending. To fund it, Japan can either crank up taxes or print more bonds… literally borrowing billions. But taxing low- and middle-income folks is a no-go, and Japan’s national debt is already over 1,333 trillion yen – that’s like having a 240% debt-to-GDP ratio! Servicing this debt gobbles up almost a quarter of the budget, leaving little room to borrow more.
Where will it go? 🛡️ vs 🤝
The lion’s share is heading to defense. Takaichi bumped defense spending to 2% of GDP ahead of schedule and plans a new defense tax in 2027. That’s crucial for security, sure, but it means less funding for social welfare, education and job support – key pillars for long-term growth and social stability.
Why you should care
For young professionals worried about jobs, health care and future taxes, Sanaenomics is a high-stakes gamble. Will it spark growth and keep budgets in check, or leave Japan—and global markets—holding an empty wallet?
What do you think? Could this bold strategy pay off, or is it too risky? Drop your thoughts below! 👇
Reference(s):
cgtn.com
