Yet instead of rescuing the people and small businesses, it continues to prioritize fiscal discipline. Behind those numbers, small and medium-sized businesses are being crushed by inflation, rising labor costs, social insurance premiums, and the consumption tax. The consumption tax is not levied on profit. It is levied on sales. Even if a business is in the red, it still has to pay the tax as long as it has sales. This is not simply a matter of “poor management.” The system itself is draining small businesses, making wage increases and reinvestment harder.
Japanese people are not becoming poor because Japan has no money. They are being made poor by policy.