[Cless]

> Japan's consumption tax, which is set to rise to 8% on April 1

So they're actually going through with this, when the economy has been depressed for over a decade...?

[thirsteh]

Only in America is a tax increase equated (without any further investigation) to depressing the economy, and a tax break (once again without investigation) equated with letting the peacock that is the economy fly free.

[Cless]

Indeed. But I hope you're not implying I am doing that. ):

Love, a liberal Canadian bent on destroying freedom, liberty, capitalism, and all things good.

[fennecfoxen]

> Only in America is a tax increase equated (without any further investigation) to depressing the economy

That's not strictly true. There are other countries who harbor economists possessed of half a brain and theory describing the basic principles of how quasi-rational actors behave in various situations. They just usually don't get listened to. :)

Promising free lunches for everyone is much more popular and gets you elected! :D

[fivethree]

Theory is dumb when all empirical data disagrees with it. Good thing the Austrian's figured this problem out by ignoring data. It's the true hacker's way.

[Cless]

You have to afford the Austrians some sympathy. They know, just know, that their economic theories are correct and just. However, they kept running into a problem: there's so much troublesome data that proves the opposite of their beliefs. One day, Ludwig von Mises discovered that the scientific method itself was flawed. So he created a new system to replace it by fiat: "praxeology." Problem solved - now science confirms everything Austrians believe. No need for data.

[fennecfoxen]

I'm sure you have multiple studies with mountains of data which clearly demonstrate that the economy is at its most prosperous at a marginal tax rate of 100%. Oh, man, you guys are so cute. :)

[fivethree]

You're dumb. Please read an actual book on economics not associated with Mises or his filth.

[Cless]

So the only possible marginal rates are 0% and 100%. Good to know.

[fennecfoxen]

Clearly.

[partoutok]

Japan economy has not been depressed. Stagnant maybe, but over the last decade unemployment rate was only 5%.

[Cless]

That's right. The main problem is deflation. Monetary policy has been effective in the last year, but increasing sales taxes could wipe all of that progress out.

So I'm depressed, not Japan. :)

[kaonashi]

Why do you think their economy has been depressed for over a decade? Every time they show a glimmer of growth, they yank out the rug from underneath by raising taxes.

[corresation]

Why do you think their economy has been depressed for over a decade?

While it is incredibly complex, the fact that their population has been static, trending towards declining, has played a significant part of it.

In many countries, economic growth is just a side effect of population growth -- every number gets bigger, but the actual wealth of each individual person is static or in decline.