Japanese consumers aren’t spending

We would peek into the windows of the Land of the Rising Sun to get a hopeful glimpse of its efforts on economic recovery. Each trip was met with disappointment and fear that for as long as the number engine doesn’t start-up strong, the cogs on that machine (NMI included) won’t move nor roll an inch down the pathway to recovery.

“Massive tax cuts didn’t get the Japanese buying. Neither have trillions of yen in public works. Now Japan is trying the ultimate in fiscal policy: giving money away in hopes someone will spend it.”

Last Friday, the Japanese government handed out shopping vouchers in a city in southwestern Japan, the first part of a plan to put $6 billion in shoppers’ hands nationwide by the end of March. This project is Japan’s most direct–desperate–tactic to prod its tight-fisted consumers into spending their way out of the country’s worst recession since the end of World War II.

“Despite the fanfare, however, the certificates have not inspired much hope for an economic recovery. Instead, many people feel the program is an act of desperation by a government bereft of any better ideas”. And the Japanese economy could use some help too. If its economic recovery efforts are slow, it instantly translates into a slower recovery for the NMI. In the meantime, how do we deal with tourism related businesses who may close shop before the end of this year?

It is obvious that when Japanese consumers aren’t spending, they won’t be coming to the islands in droves as they used to in years past. In fact, Japanese visitors have decided to stay closer to home in these difficult times by taking family vacations in their own resorts available throughout Japan. If they stay home, they won’t be coming here, would they? This would further drive the tourism industry way south.
New mouthwash in paradise

Wherever I go these days, I hear a familiar refrain from kids and elderly alike in casual conversations as they discuss the deepening economic crisis. Whether they understand the depth of the issue or the consequence of the crisis is besides the point. My consolation is the very fact that they are talking about it. It’s a take-off point to encourage more conversation among our people about a condition that means their quality of life. I decided to quiz grammar school kids to see how well versed they may be about this condition.

Do you think there’s enough money for your education between now and the year 2002?

“No, because of de Asian crisis, `nai!”

How about money for medicine at CHC in the event you get seriously sick?

“No, because of de Asian crisis, `nai!”

Do you think mom and dad can buy your books and pencils for the rest of the year?

“No, because of de Asian crisis, `nai!”

So what do you think we should to weather out this stormy financial situation?

“Save money `nai so that we don’t suffer because someone wasted money”.

It’s very comforting that kids are generally wary of what’s happening around them. At least I know that down the stretch they’d be more than able to address and resolve issues they’d face in the next millennium. If they’re talking resolution of problems now however simplistic their answers, they’d make it as they too take their seats as businessmen, lawmakers, manufacturers, etc. Ai, yeai, yeai, “It’s de Asian crisis, ‘nai!”