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Economic Benefits of Local Production for Local Consumption from GOTO

GOTO Travel appears to be temporarily suspended.

The government says that even with the Corona disaster, we need to get the economy going, so domestic travel = economic support! They make it sound like it is, but is it really?

We considered its economic impact.

Compared to the case in which the GOTO Travel Project is implemented as is or suspended, the average monthly consumption is 180.9 billion yen, or 2,170.8 billion yen on an annualized basis. This would be a decrease of ゙. This is equivalent to 0.39% of GDP.

To give you an idea of what this scale looks like, the overall economic loss for Corona is estimated to be negative 6.1% of GDP (30 trillion yen). (METI report)

%増加を見込んでいたので、7.5% the government’s estimate at the beginning of the year %増加を見込んでいたので、7.5% economic growth (GDP) of 1.4 %増加を見込んでいたので、7.5% GDP will be lost. 0.39 of GOTO loss is only %は、全体5.2%. The number of people who have been affected by the earthquake is not less than ゙.

In other words, national strength is declining and the outstanding national debt (national debt) is increasing before the economic loss caused by the corona, and Japan Inc. will collapse if more drastic problems are not addressed.

So what should we do?

In the short term, consumer spending, including GOTO, will remain important because Japan has no natural resources or anything else in terms of the components of its GDP. In particular, there is less eating out compared to Europe and the US. There is more room for expansion in food and beverage than in travel. This is where we need to support, even if the national debt increases. The government should promote capital investment in restaurants and other businesses that are subject to the three density measures, and provide more generous subsidies for management.

Rather than traveling far away, eating and drinking in the neighborhood is a better way to control coronas and increase economic efficiency. For example, we can create the safest place in the world where PCR test kits are always available at the entrance of restaurant chains, and if the test is negative, you can enjoy your meal without a mask. And if they offer a post-meal vaccination service, even better!

And of course, once we have group immunity, we’ll travel!
In the medium term, digitalization (DX) of the country is urgently needed. Following the example of Estonia and Sweden, administrative efficiency will be thoroughly improved.

If the DX-ization of private companies is further promoted, the decentralization of offices that had been concentrated in urban areas will lead to the dispersal of people to rural areas, thereby revitalizing them. Although the country is small, it is rich in nature. There are mountains. There are rivers. It has oceans. Even if there are no natural resources such as oil or other industrial resources, this abundance of nature can be expected to increase domestic demand.

You don’t have to travel, you can buy crabs freshly landed in Hokkaido online from anywhere in the country, and a few hours later you can be back at the Super ROSI It will even be possible to have it delivered by ゙stix.
If the aforementioned short-term food and beverage policies and the medium-term DX approach are successfully implemented, a new market for local production for local consumption will emerge.

Local production for local consumption means that locally produced goods are consumed locally. For consumers . . can obtain fresher, less expensive agricultural products from familiar places.

Wal-Mart is ahead of Amazon because it understands this.

In the long run, more measures are needed to deal with the “low birthrate” part of the aging society. A country without an increase in the number of young people has no future.
AI matching, which the government is trying to promote, is good, but the government must take drastic measures to look at the latest science, such as support for activating AI-based IVF and measures to reduce the cost of egg freezing. We cannot afford to lose sight of the fact that we are not in a position to do so.
… So, if we think about it calmly, it seems that there are still ways for mankind to develop civilization.

◆ Reference
Japanese Do Not Understand the Reality of Their Country’s Affluence GDP is large, but per capita it is unbalanced | Domestic Economy – Toyo Keizai Online