Economics
History Repeats as Sales Tax Hike Pushes Japan Toward Recession
- Fourth sales tax shock leaves thrifty consumers venting
- Blunder for reflationists is common sense for budget balancers
Photographer: Tomohiro Ohsumi/Getty Images AsiaPac
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Japanese housewife Matsuko Mitsui had been meaning to buy a new air conditioner for years, but it took the looming sales tax hike in October to spur the 64-year-old to finally make the purchase.
Like many people in the country, she isn’t planning to splash out again anytime soon, leaving the economy teetering on the edge of recession. And that was before the spreading coronavirus gave yet more cause for caution.