The Japanese Prime Minister calls on the government to develop an economic stimulus package

Japanese Prime Minister Shigeru Ishiba formally instructed his ministers on Friday to compile a new package to cushion the blow on families from rising costs of living as the new government makes deflation its top priority.

The move comes as Ishiba, previously seen as a supporter of fiscal austerity, is now stressing ahead of the general election that his goal is to completely free the economy from the deflation that has crippled it for the past three decades.

“We will have to support people who are suffering right now from rising costs until a positive growth cycle is established, with wage increases that outpace inflation and increased capital expenditure,” Ishiba told the Parliament in a speech.

Ishiba told his cabinet on Thursday that a supplementary budget will be drawn up to finance the package after elections scheduled for October 27.

The new package will include payments to low-income families and subsidies to local governments, he said in the speech.

Among other economic policies, Ishiba has also pledged to raise the minimum wage to 1,500 yen ($10.24) an hour this decade from the current 1,055 yen.

Economic conditions have improved and wages have finally started to grow after three “lost” decades focused on cutting costs, he said. “But we are still halfway to an economy where people can feel confident in spending.”

Source: Terra

Rose

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