ID :
13481
Wed, 07/23/2008 - 11:33
Auther :
Shortlink :
https://oananews.org//node/13481
The shortlink copeid
Japan White Paper Calls for Risk Taking for Sustained Growth
Tokyo, July 23 (Jiji Press)--Japanese companies and households need to take risks for high investment returns to ensure sustained growth of Japan's economy as its population rapidly ages and declines, the government said in its economic white paper Tuesday.
The white paper, submitted to the day's cabinet meeting by Economic and Fiscal Policy Minister Hiroko Ota, estimated that Japan's potential growth rate in the 2020s would fall short of one pct due to a drop in the working population if the employment rate and productivity are assumed toremain unchanged.
The fiscal 2008 white paper on the Japanese economy and publicfinance pointed out that companies taking risks enjoy higher profitability.
Saying that Japanese firms are slow to take drastic restructuring steps, the paper urged them to carry out mergers and acquisitions and create newbusinesses in order to keep expanding.
The paper said households are the key supplier of risk money to firms and called for promoting a shift of individual financial assets,mainly in cash or deposits now, into the capital market.
People's preference for home ownership and heavy housing loan burden are key reasons for the lack of active investment in risk assets suchas shares, it said.
The economic white paper also emphasized the importance of the consumption tax, which is seen as a prospective financial resource to coveran inevitable increase in Japan's social security expenses.
The consumption tax is expected to increase its presence for its role in covering a drop in income tax receipts, because the tax, unlike the income tax, does not affect people's willingness to work and there is littleregional gap as a revenue source for municipalities, the paper said.
But the paper called for discussions on the consumption tax's deficiencies such as the heavier burden on low-income earners and on a desirable state of social security benefit payments and their burdensharing.
The white paper, submitted to the day's cabinet meeting by Economic and Fiscal Policy Minister Hiroko Ota, estimated that Japan's potential growth rate in the 2020s would fall short of one pct due to a drop in the working population if the employment rate and productivity are assumed toremain unchanged.
The fiscal 2008 white paper on the Japanese economy and publicfinance pointed out that companies taking risks enjoy higher profitability.
Saying that Japanese firms are slow to take drastic restructuring steps, the paper urged them to carry out mergers and acquisitions and create newbusinesses in order to keep expanding.
The paper said households are the key supplier of risk money to firms and called for promoting a shift of individual financial assets,mainly in cash or deposits now, into the capital market.
People's preference for home ownership and heavy housing loan burden are key reasons for the lack of active investment in risk assets suchas shares, it said.
The economic white paper also emphasized the importance of the consumption tax, which is seen as a prospective financial resource to coveran inevitable increase in Japan's social security expenses.
The consumption tax is expected to increase its presence for its role in covering a drop in income tax receipts, because the tax, unlike the income tax, does not affect people's willingness to work and there is littleregional gap as a revenue source for municipalities, the paper said.
But the paper called for discussions on the consumption tax's deficiencies such as the heavier burden on low-income earners and on a desirable state of social security benefit payments and their burdensharing.
