Consumer income turnover
1. Definition: Starting from consumption after pension payment, the cycle of income →consumption is defined as consumption income turnover (1.0 turnover).
2. Assumption: It is assumed that consumption starting from about 55 trillion yen (annual) of pension payment (when there is no leakage to savings and profits of business through CtoC transactions through internet entrepreneurship, etc.) turns 1.0 every year.
3. Analysis: The effect of boosting GDP is approximately 55 trillion yen per year (excluding the effect of the consumption tax)
4. Conclusion: Increasing the turnover of consumption income has a large effect on boosting GDP. Even if it is assumed that savings and profits to businesses will be 50%, if the turnover rate of consumer income is 2.0, it will be about 55 trillion yen, and the effect of boosting GDP will be 10%.
About 55 trillion yen, the effect of boosting GDP is 10%.
5. Advantages: Without tax reduction ① Income tax and consumption tax revenue will increase, and a positive impact can be expected on the reduction of social security benefit expenditure in the general account budget. If the consumption income turnover rate can be increased to a level where social security benefits can only be covered by insurance premiums, it will be possible to abolish the in-service old-age pension system. It is expected that the elderly will work and stimulate consumption.
6. Disadvantages: pensioners tend to prefer cash payments and are not able to make full use of the internet and smartphones. → Efficiency in consumption activities tends to be poor (cashless payment not used)
7.Solving the problem … Disseminating Libra and Calibra to establish a mechanism to encourage cashless payments to pensioners. (We will conduct an experiment in which payment is provided in a selective step by way of a Libra.)
Mobile operators will create a system that enhances the convenience of smart utilization at convenience stores, regional bank counters, and Japan Post Bank counters. By making it easier to use rebate remittances, it is possible to streamline remittances of foreign workers from the increasing number of social security partnership countries (23 countries) when pension entitlements arise. If the environment where Libra and Calibra can be used is in place, pension payments will not be reduced by remittance fees, making the country more likely to be selected by foreign workers. Remittance fees to your home country during your stay in Japan will also be reduced, which will boost consumption in Japan.