Behind Japan’s Economic Recovery Is Abenomics
Why do people say Japan's economy is recovering? Because the stock market hit a 30-year high. Despite the yen dropping sharply in international markets, even Buffett jumped in (everything bought with dollars looks like a bargain)...
A few pretty effective moves were made:
On one hand, monetary easing, or in simple terms, allowing zero-down-payment home purchases, mortgage rates at 0.4% staying unchanged for many years, and allowing 1% of mortgages to be tax-deductible; simultaneously cutting corporate taxes by 2.4%, also a multi-year reduction.
On the other hand, encouraging childbirth with subsidies—essentially ¥10,000 per month (about 500 RMB) for each new child from birth until high school graduation. Fertility rates have risen, plus tuition is now free through high school (with university free tuition currently being implemented).
Unemployment has dropped to 2.6%. Overall, Japan is recovering.