Japan Adopts View That Huge Government Debt Doesn’t Matter

Prime Minister Fumio Kishida deleted a pledge from earlier government statements calling for Japan’s budget to be balanced by 2025.

And he declined to give a date by which Japan would do something to lower its government debt..

while promising to significantly increase military spending.

It is a bold stance, given that the debt tops ¥1.1 quadrillion or $8.3 trillion at current rates, more than twice the size of the economy.

Many countries added heavily to their debt during the Covid-19 pandemic and a global debate is under way about whether they need to cut back now.

This camp, led by former Prime Minister Shinzo Abe, says Japan has room to spend a lot more—including on its defense budget to counter

Japan’s experience is likely to be instructive because it has the highest government debt among leading economies

The other side of the argument is spearheaded by a vice finance minister who says the country is like the Titanic, heading for a massive iceberg of debt.