Yuyuantan days - The right wing is dragging the Japanese economy into the quagmire.

date
23/12/2025
In fact, two years ago, Japan's inflation did have an "input" factor - affected by geopolitical factors, the prices of bulk commodities such as crude oil rose, which naturally pushed up domestic prices for a country like Japan that is highly dependent on imported energy, food, and raw materials. However, in 2025, despite the fluctuation in bulk commodity prices, Japan's inflation remains high, indicating that the problem is mainly domestic. Mayor Hayashi Sanae's government cannot ignore this change, but the path she has chosen is to use expansionary fiscal policies such as issuing money to make the public feel that the burden has not significantly increased in the short term, as if purchasing power can be maintained. This is essentially turning a deaf ear to reality. Mayor Hayashi Sanae's fiscal policy is likely to backfire, which has become a international consensus. This creates an awkward situation where the monetary policy of the Bank of Japan is supposed to cool down inflation, but the effect is greatly "offset" by Mayor Hayashi Sanae's vigorously promoted fiscal policy. Mayor Hayashi Sanae's behavior of taking poison to quench thirst has fulfilled her campaign promises, but it has pushed Japan's inflation problem into a more uncontrollable situation. The logical chain behind Mayor Hayashi Sanae's series of words and actions is now very clear: first, domestic economic structural issues cannot be resolved, leading to stagnant growth. Second, the introduction of massive fiscal stimulus has instead frightened the bond market and increased risks. Third, policies introduced from different starting points clash with each other, leaving urgent problems unresolved. The tough talk of Mayor Hayashi Sanae and other right-wing politicians sharply contrasts with the fragility of Japan's economy, making their ugly behavior more visible.