Tuesday, December 16, 2008

Fixed-sum cash benefits

On Oct 30, Japan's Prime Minister Aso decided to use 2 trillion yen (20 billion dollar) as a government's economic stimulus package. He announced that Japan government will distribute 12,000 yen/person of cash benefit to all Japanese citizens. However, many people have doubts about the effect on economy.

A fake newspaper article reported that the Prime Minister decided to give 2 trillion yen cash to "a" person. According to the article, a junior partner in the coalition government opposed the plan and presented a counterproposal that 20 thousands winners selected by lot will get 100 millions yen/person.

I feel the later is attractive. If the government distributes 10 millions yen/person, about 200 thousands persons (about one per 500 citizens) can get the cash benefits. If it is assumed that a family consists of five persons, one for every 100 households will win the handouts.
That is better than the original plan, isn't that?

No comments: