Japan’s Economy Is Shrinking After Huge Tax Hike

Posted: September 8, 2014 in Uncategorized
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The smug self-confidence of financial analysts and writers who predicted that Japan’s monstrous sales tax increase would have no long-term effect on its economy should be severely shaken. An Associated Press report tonight by business writer Elaine Kurtenbach tells readers that the Land of the Rising Sun’s economy “contracted at a larger than earlier estimated annual rate of 7.1 percent in April-June, as companies and households slashed spending following a tax hike.” This means that the “experts” who assured everyone that the second-quarter contraction would be smaller than or merely offset the brisk first-quarter expansion of 6 percent were horribly wrong.

..The tax hikes are likely to send the Japanese economy into a tailspin.

http://newsbusters.org/blogs/tom-blumer/2014/09/08/ap-seems-stunned-japans-economy-shrinking-after-huge-tax-hike#sthash.4ZnYxXXk.dpuf

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