The 1 economic experiment Shinzo Abe won't try

Why is everything on the table but straightforward spending?

Shinzo Abe.
(Image credit: Illustrated | STR/JIJI PRESS/AFP via Getty Images, Fourleaflover/iStock)

Japan's economy has been in the doldrums for roughly three decades now — not quite in recession, but growing very slowly. In 2013, Prime Minister Shinzo Abe arrived on the scene, promising to revive Japan's economy with a new mix of policies, colloquially called "Abenomics." Seven years on, and Abenomics looks like a bust: The slow overall pace has continued, and Japan's economy actually shrank by 6.3 percent in year-over-year terms in 2019's fourth quarter. Early indications are that the economy may well shrink again in 2020's first quarter, which means the country will be in an official recession — negative growth over two quarters.

There's a lot going on here, but one thing seems clear: Japan's policymakers, like much of the Western world, remain frozen by an overwhelming terror of deficit spending.

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Jeff Spross

Jeff Spross was the economics and business correspondent at TheWeek.com. He was previously a reporter at ThinkProgress.