Nipponese Stimulus

Faced with ever dropping car sales and an aging population, Japan is turning up the money tap to solve both. According to Reuters, Japan is considering introducing subsidies of up to $3K for the purchases of gasoline/electricity hybrids and other low emission vehicles. If the opposition party has their say, certain demographically desirable emissions will be subsidized too.

For those who don’t have a car, or lack the mandatory parking spot you need to have before you may own a car in cities like Tokyo, there may even be washer-dryer money: Energy-saving home appliances could also be part of the stimulus plan.

Subsidies under consideration would cover electric and hybrid vehicles as well as regular gasoline- or diesel-engine cars that meet certain emission standards.

Buyers of mini vehicles that fall under these categories would receive $1K. The amount would be doubled for the purchase of a larger qualifying automobile. And for the few people who own a car 13 years or older (which would count as either a disgrace or a collector’s item in Japan) there would be another $1K if they scrap it and buy a new qualifying vehicle.

The main opposition Democratic Party of Japan will unveil their own stimulus package next week, says the Nikkei [sub]. It includes—no surprise—subsidies for the purchase of environmentally-friendly cars. It also would give incentives to make sorely needed babies. According to the opposition plan, each child of junior high school age or younger would be entitled to a monthly ”child allowance” of $260.

Compared to the German Abwrackprämie (try to pronounce that if you are Japanese—a test performed by my Japanese wife produced hilarious results), the Nipponese measures sound a little meek.