New start

I found interesting article on CNN.

[Summary] Shinzo Abe who is the prime minister of Japan is going to press on a proposal that hikes tax next year. Consumption tax in Japan will be raised to 8% from 5% in April 2014. By 2015, it will be increased to 10% depending on the situation. He expects it to be an economy recovery.

[Reflection] I think it will end in failure. I mean it will not go well. It is not good to impose consumption tax on all products. For example, it is better to impose consumption tax on only luxuries such as car, house and jewel. It should not impose on everything. Food or clothes are daily necessities and consumers would try not to buy them if imposed on all products. It would be meaning less plan if demands decreased sharply. However, I like Shinzo Abe’s attempt because he manages to raise funds to recovery an economy. it will be the help to Fukushima recovery.

[Question]
Q1. Do you think it will go well?

Q2. Are there any other solutions to an economic problem?