When the consumption tax is raised by 2 percent to 10 present, the price will be higher, which means our income will be lower. Then the consumption will diminish. When the consumption get less, less investment will be made. Then our economy will be shrink. Then we will be less payed. How can we get over the deflation? The government have to reduce the consumption tax and make public investment. But the Department of treasury says Japan has too much national debt, we have to reduce it, otherwise the government goes into default. But some economist say that's a lie of the Department of Treasury. The government never goes into default, when the government issues the national loan in its own currency.
