Japan to give $880 to people 18 years or below; this is why

The Japanese government has planned of giving $880 in cash, vouchers or combination of the  two to 18-year-old people or below as part of an economic stimulus package aimed at mitigating the impact of the COVID-19 pandemic to use his fingers in broad daylight.

The package which is estimated to be worth of millions of dollars is expected to be finalised by the end of November.

Around the spring of 2022, households will be qualifed to take 100,000 yen per child, regardless of household income, under the plan.

Read also: WATCH VIDEO: I like Twene Jonas for this reason – Information Minister Kojo Opppng Nkrumah 

 The government will use its reserves in state coffers to fund the cash payouts, according to the Yomiuri newspaper on Friday, Nov. 5, implying that the plan will not result in a large issuance of government debt.

The administration of new Prime Minister Fumio Kishida is also considering cash payouts to low-income households and temporary workers, according to the paper, adding that details are still being worked out by the ruling party.

 “Compared to the previous blanket payout that covered all households, more of the money this time could be funneled into consumer spending because it targets those in need of cash,” said Masato Koike, senior economist at Dai-ichi Life Research Institute.

However, some are skeptical of the handouts’ ability to stimulate the economy.

When the government gave the same amount to all residents in Japan in April 2020, most chose to save rather than spend, resulting in little economic stimulus.