PUBLIC DEBT Point: To stimulate the economy, the government prints money and spends it wildly. Public debt has reached 130 percent of GNP. Counterpoint: High debt is little more than a stopgap solution to Japan’s long recession. A basic overhaul of the system is needed.
EMPLOYMENT Point: Japan’s jobless rate stands at a record 4.9 percent. The government wants to protect jobs at small and medium-size firms. Counterpoint: Job protection inhibits speedy corporate restructuring, which slows new job creation and delays economic recovery.
CONSUMPTION Point: Consumer spending is anemic. Worried about jobs and retirement, the Japanese continue to do what they know best: save. Counterpoint: Consumption will remain weak until there is a firm recovery and confidence grows. Still no light at the end of the tunnel.
