J Update

The great earthquake in Kumamoto on July 28 th  paralyzed manufacturing around Kumamoto area. Kumamoto is known as concentration of semiconductor industry. A lot of factories for producing semiconductor and related goods suffered from the earthquake with suspension of their operation. It is not clear how much the earthquake affected businesses in Kumamoto and Kyushu area.   This earthquake in Kumamoto  imposed  great damage on various industries. It has blown away Aeon Mall Kumamoto, which is one of the greatest shopping malls in Kyushu region. Leak of gas after the earthquake is supposed to have caused a major explosion in the building. Three chimneys in Yatsushiro Factory of Japan Paper fell down with the quake. The factory was producing papers for books and newspapers. The chimneys had been the symbol of landscape of Yatsushiro city.   Having many facilities for semiconductor and related industries, Kyushu is dubbed as “silicon island.” Kumamoto is the center...

Immediately after she announced her plan to reduce consumption tax rate for foods from 8 percent to 1, Prime Minister Sanae Takaichi faced strong dispute of lawmakers in the Liberal Democratic Party. The criticisms targeted lack of perspective for fiscal resource of the tax cut and difficulty of resumption of current tax rate two years later. It is possible that the frustration with Takaichi’s unilateral handlings of policies will erode her political basis in the ruling party.   Consumption tax cut was firstly advocated by opposition parties as the policy for the Lower House election in February, which was abruptly decided by Takaichi. To compete with rival parties, Takaichi suddenly included the consumption tax cut for foods in LDP’s campaign platform. Having achieved victory in the election, Takaichi launched a multi-partisan council to discuss the tax cut. Although the council could not reach a consensus, Takaichi decided on July 30 th  to introduce the tax cut in April 202...