Stop Worrying Abount Naitonal Deficits (国の赤字について心配するのをやめる)












To study English, I often watch debate videos hosted by Intelligence Square in the US.
Today, I’d like to share with you one of the videos from the debate series.

Stop Worrying About National Deficits

I found the debate on “Stop Worrying About Abount Naitonal Deficits” interesting, so I translated and illustrated it for you.

In most of the developed countries, the budget deficit, or the primary balance, which is the amount of revenue minus expenditure, is negative. Among them, Japan’s outstanding debt is 264% of its GDP, making it the world’s most indebted country in terms of percentage.

The reason why Japan is so special is for the simple reason that it has a lower birthrate, an aging population, and a shrinking population than other countries, which will lead to a decrease in revenues such as taxes and an increase in expenditures such as social security expenses.

Pessimists of budget deficits argue that Japan will go bankrupt, but in this debate, the affirmative side (i.e., the side that argued that there is nothing to worry about), which won the debate with 73% of the audience’s support, agreed that it is technically impossible for a country that issues its own currency to default on its debt because it can issue money as needed.

So, is it okay for the government to keep printing more and more money and increasing the debt indefinitely?

The answer is no.

Because if the government continues to print money, issue bonds, and engage in fiscal stimulus, demand will exceed supply, leading to inflation, and inflation will continue to grow. Inflation means that the price of goods will go up, which means the value of money will go down.

The reason why Japan’s currency and government bonds are being bought despite the fact that Japan has such a large budget deficit is because of the creditworthiness of Japan. This is called tax bearing capacity. In other words, the market believes that the Japanese people have the ability to repay their debts, including those of future generations.

However, in the event of inflation or even hyperinflation, the yen will continue to be sold and the bills will become mere pieces of paper, and the only way out is financial collapse.

What is more worrisome is the risk of natural disasters. We are now living in an age where a disaster that occurs once every 50 years occurs every year. Furthermore, in the event of a Nankai Trough earthquake or an eruption of Mount Fuji, economic losses and reconstruction may cost hundreds of trillions of yen.

I may have overstated the case a bit, but next I would like to examine the current government measures to reduce the budget deficit.


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サイト管理人: カネゴン バブルが終わる直前の1991年に、外資系の金融関係の会社に入社しました。そこでビジネスのイロハを学ばせていただき、10年以上のオーストラリアでの勤務時代には英語漬けの毎日でした。その後、縁があり、現在働いている外資系IT企業にお世話になっております。ここでは、1,000名を超える組織と日本だけでなく韓国のチームを率いる経験をさせていただき人材開発やチームエンゲージメントに注力してきました。 (このブログの最初の投稿 2020年3月2日) 人間に生まれて半世紀が過ぎました。後どれくらい自分の人生が残されているか分かりませんが、残りの人生、自分の好きなことや、興味のあることをひたすらやり続けていくことを決意しました。 それを全うすることが出来たら、人生の最後に自分の人生は本当に幸せであったなと振り返ることが出来ると思うのです。 このブログはそうした自分の想いを込めて、”幸せの達人になる” と名付けてみました。 これから毎日、”xxxの達人になる”というカテゴリー別に記事をアップしていきますのでどうぞよろしくお願いいたします。 Writer; Kanegon Joined the US financial related company in Tokyo back in 1991 as the fresh graduate and learnt the business 101 over there including over 10 years overseas experience in Sydney, Australia. I'm currently working for US IT company in Tokyo and am fortunate to manage over 1,000 employees organization for not only Japan, but also Korea team.