From the article of 'Petrel'
No.662 / January 18, 1998

Please send us your opinion and the impression about this article without reservation.

A Keynesian principle explained the panic from the disagreement of the demand and supply. That is, it was concluded that the lack of "effective demand" was a cause of an economic recession.If you say like  Japanese Communist Party, the consumption shortage brings the panic and the recession. Of course, the standpoint of Japanese Communist Party is below the Keynes. Because Keynes never make "lack of  effective demand" simplification and dwarfish for lack of individual consumption.

The reason why the panic is a panic is that it is a general, excessive production apart from it. The cause of the panic will not be explained though excessive production is taken out (even if you take out  underestimated consumption though it is the same thing). The most vulgar and superficial solution plan that the panic is canceled by expanding consumption is instituted from such a superficial "theory". You must not be surprised even if the theory is definitely powerless compared with the panic.

Actually, the tax reduction has been held many times up to now by the name of the business measures. However, it hardly achieves the effect which stands out. It is the current and same thing even though 
2,000,000,000,000-yen tax reduction policy at this time.

A bourgeois (and, the petty bourgeois) opinion scatters the impracticable theory if not effective because the tax reduction is little amount, not 2,000,000,000,000 yen and 6,000,000,000,000 yen is good, not, it is  10,000,000,000,000 yen for the amount of the tax reduction. It is not in the problem of goodness at all if it is not 2,000,000,000,000 of course yen and 6,000,000,000,000 yen.

The expansion of consumption means the improvement in the capitalistic distribution relation. However, the panic not only is caused by the capitalistic distribution relation but also develops from the production relation and the contradiction. Therefore, the correction related to distribution is essentially powerless compared with the panic. Moreover, it is even please doubtful though becomes "Consumption expansion" and an effective demand expansion even if 6,000,000,000,000 yen is scattered by the tax reduction.

Let's assume that 6,000,000,000,000 yen for the tax reduction was procured by thoroughly doing  gAdministrative reformation", for instance, decrease a public business for 6,000,000,000,000 yen. In this case, The amount of the tax reduction of 6,000,000,000,000 yen might be certainly expended for "consumption  expansion". However, the amount of a public business decreases on the other hand for as many as 
6,000,000,000,000 yen. And, why does the tax reduction disputant think that the decrease does not cause business a definite adverse effect?

It is a complete foolish talk, isn't it?

This is a story of easy addition and the subtraction. If you say simply, 6,000,000,000,000 yen is pulled on the other hand and 6,000,000,000,000 yen is added on the other hand. Therefore, only the conclusion that the effect on business is 0 when subtracting them is reached.

It is only a discussion that it is more effective to expend the remainder in the back to a public business for 6,000,000,000,000 yen or to turn to the tax reduction and expending it as an individual consumption expansion is more effective. Oh dear, it should be said it is not very different. A bourgeois by say that a public business is more effective scholar might be more abundant. Because, because a public business of "effect" might be larger. The tax reduction becomes disadvantageous from a public business further as the government says if it is assumed, "The amount turns to savings even if taxes is reduced and do not go out to consumption". Thus, there is no one of weak grounds in your by be roaring for more theoretical standpoint if it is a tax reduction and it is not a public business.

Do not say that military expense is as useless as Japanese Communist Party there is uselessness in a public business. Because, if a mere public expense is wasted, it is it is convenient for the recession and the panic. It is certainly an expansion of the market when invested productively (consumption), too. However on the other hand, meaning of larger-scale production as for it and might intensify excessive production further. If it is useless consumption, expanding the power of production does not decide.

It should be said that there is no one as "effective" as useless consumption and military consumption from the viewpoint of "business recovery" it. This is what Marsas and the keynes who is your "large senior" have already emphasized very much. Therefore, to expand the market and to recover business because of the tax reduction, the nation reduces neither public business expense nor military expense but the nation can do nothing but use the capital by the debt (money is not borrowed from the private organization, the national debt is issued, and Bank of Japan is made to undertake it, etc.)

Really, has this is produced the market and expanded? In that case, the market is created to the remainder and the bourgeois can expand though they think, like something is produced because anything is not either. Thus, the bourgeoisie freely controls everything and can rule even by business.

Of course, these kind of things are only the fantasy. Something cannot be loudly at least produced with economics when anything is not either.

While the nation's borrowing money, trampling it down in fact, and being piling up the debt to the debt, it seems that "something was produced because anything was not either". The debt of the nation increases rapidly actually. Only it is it and business progresses now as all are smooth. Enormous amount of capital was poured into a public business by the hand of the nation and the tax reduction was executed.

The reason why these kind of things can be done is that the nation does not think about the the  consequences every year of every year and a huge debt is piled. It is "In the world, all are none." as long as
this debt is merely accumulated and the repayment is not pressed (that is, when this huge national debt is not repaid).

The nation will notice to the importance of this, as long as it advances to such the worst situation --- the nation is chased by the payment of the interest of this huge debt, uses more and more parts of the tax of the people only to pay a mere interest and the capital is entering the state of little remaining for the policy of the nation, in addition, the nation borrows money for the payment of the interest of the debt. (The finance of Japan has already partly become so!)

However, it is already too late and has remained at that time only "solution" like a bankruptcy of the nation and a ruined inflation, etc.The policy which the nation can do has only one when becoming so. The inflation is made to be progressed rapidly, and that is, it is only to liquidate and to cancel the debt of the nation in fact. However, it is failure and dismantlement of the nation will be meant.