On April 2nd, Tokyo will commence an economically stimulating reward scheme where residents will receive points equal to 11,000 yen. This initiative aims to fuel consumer spending and aid the COVID-19-hit economy. The plan is in line with the government's bid to boost domestic demand, helping businesses recover from the associated downturn.
Japan's government frequently uses point systems or vouchers to stimulate consumer spending during economic downturns. Citizens value such initiatives as they not only offer them personal benefits but contribute to the overall recovery of the economy. These systems reflect the deeply ingrained social and legal value of mutual aid in Japan.
In the US or EU, governments typically stimulate the economy by reducing taxes or interest rates, or by distributing stimulus checks. While these methods directly inject cash into the system, Japan's method encourages specific consumer behavior, aiming to create a ripple effect among local businesses.