SvennoJ said:
LurkerJ said:
Japan to Fund Firms to Shift Production Out of China (and bring it back to Japan)
Japan has earmarked $2.2 billion of its record economic stimulus package to help its manufacturers shift production out of China as the coronavirus disrupts supply chains between the major trading partners. The extra budget, compiled to try to offset the devastating effects of the pandemic, includes 220 billion yen ($2 billion) for companies shifting production back to Japan and 23.5 billion yen for those seeking to move production to other countries, according to details of the plan posted online.
That has renewed talk of Japanese firms reducing their reliance on China as a manufacturing base. The government’s panel on future investment last month discussed the need for manufacturing of high-added value products to be shifted back to Japan, and for production of other goods to be diversified across Southeast Asia.
https://www.bloomberg.com/news/articles/2020-04-08/japan-to-fund-firms-to-shift-production-out-of-china
We need more of this, now is the time.
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So the tax payers have to fund domestic production of goods? Why not simply raise import taxes, at least to fund that stimulus package. Sounds like a bailout to me.
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Tax revenues in most first world countries haven't been funding most government projects/spendings in a long time, and Japan is no exception. Tax payers aren't going to pay more tax because of this bill, and if taxes increase in the future, it won't be because of it either.
As for raising import taxes, it is an indirect solution compared to the proposed bill, which on the surface at least, seems like of a direct response that achieves quicker results.
