Government policies have locked the Japanese economy in a downward spiral. In order to promote growth, Japan creates supplemental budgets funded by borrowed money. When the government money runs out, the economy again slips into the doldrums, thus necessitating new projects funded by new loans. This deepening addiction to borrowed money has caused catastrophic damage. Japan's inefficient economic structures promote social welfare at the cost of stymied growth.
Japan already holds the record as the world's most indebted government.
Its newest budget deficit, at 38.4 percent, will only compound this. At this pace, Japan's debt will top 150 percent of its GDP within three years. Japan's budget and economic structures are not sustainable, and by refusing to adopt direly needed reforms, Japan's economy will only decay further. Every action the Japanese government takes along these lines to bolster its economy only extends the damage. The new plan would give the banks some badly needed business.