🇯🇵 Japan's Prime Minister Sanae Takaichi is betting big with an 18.3 trillion yen ($117B) stimulus package to tackle inflation and economic stagnation. But critics say her 'Takaichinomics' approach risks worsening the country's debt crisis while failing to address root causes. Here's the tea. ☕
Yen Woes & Inflation Blues
Japan's economy shrank 1.8% in Q3 2025 – its first contraction since 2024 – as the yen hit 157 per dollar (📉 weakest in 10 months). Core inflation hit 3% in October, squeezing households already facing stagnant wages. 'Raising rates could help, but Takaichi’s stuck in the past,' argues Asahi Shimbun’s Makoto Hara.
Cash Handouts vs. Structural Problems
The PM’s plan includes gas tax cuts, energy subsidies, and child support payments. But with 20,609 food items seeing price hikes this year (😱 65% jump from 2024!), analysts call these measures 'Band-Aid solutions.' 'It’s like using a water gun on a forest fire,' quips economist Mitsuru Saito.
Debt Time Bomb Ticking
Japan’s debt-to-GDP ratio nears 240% – the world’s highest. Yet 64% of the new budget relies on bonds, pushing 10-year yields to 16-year highs. 💣 Financial strategist Masahiro Ichikawa warns: 'Markets won’t stay patient forever.'
As holiday shopping season begins, many Japanese families are asking: Will this stimulus bring relief or just more economic whack-a-mole? 🎮 Stay tuned.
