Capital Economics Calls Japan Sales Tax Debate Worthy

The video discusses various aspects of a political manifesto, focusing on zero reliance policies, contradictions in fiscal strategies, and the potential impact of a sales tax hike. It also examines the Bank of Japan's monetary policy and the implications of taxing retained earnings. The discussion highlights the challenges and debates surrounding these economic policies.

What is one of the main challenges mentioned in achieving the political goals of zero reliance on nuclear energy and zero food waste?

• Lack of public interest

• International opposition

• Insufficient financial resources

• Contradictory policies

Why is the proposed sales tax hike a topic of debate?

• It could lead to increased inflation

• It might cause a recession

• It is expected to boost the stock market

• It will decrease unemployment

What is the stance of the Bank of Japan regarding monetary easing according to the manifesto?

• Increase in easing measures

• Continuation for the foreseeable future

• Gradual phasing out

• Immediate cessation of easing

What is the intended purpose of the tax on retained earnings?

• To increase consumer spending

• To reduce corporate profits

• To encourage firms to increase wages and investment

• To decrease government spending

What is a potential issue with the tax on retained earnings?

• It will decrease foreign investment

• Firms may find ways to avoid it

• It will increase unemployment

• It will lead to higher inflation