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Article: The politics of pain; Japan's economy; Japan's prime minister promises austerity.(Asia)(Prime Minister Junichiro Koizumi)(Brief Article)
- Article from:
- The Economist (US)
- Article date:
- June 23, 2001
CopyrightCOPYRIGHT 2001 Economist Newspaper Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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NEVER has austerity been so popular. Each week brings news of fresh wounds to Japan's bloodied economy. Exports are falling, company profits have collapsed, manufacturing production is slumping and the stockmarket looks perilously weak. In all likelihood, Japan is already back in recession, for the fourth time in ten years. Yet nothing can touch the prime minister, Junichiro Koizumi, whose popularity rises as Japan's economic fortunes sink. On the contrary, pain is part of Mr Koizumi's pact with the voters.
His economic plans, due to be unwrapped on June 21st, could well push Japan deeper into recession. At their centre sit two pledges: to tighten public spending ...