A recession in the 1st quarter need not be a heavy concern, as biz & revenues may pick up.
However, if it continues into another quarter, then it will be time to consider options, especially in our unstable world caused by dictators & competition.
John Maynard Keynes Keynesian Economic theories had been proven right & a solution for Nations slipping into recession, for decades.
There are 2 options to uplift Japan:-
A.) Let the recession continue, only the strong biz enterprises survive while others fold.
- With higher unemployment rates, it will cause the high Japanese salaries to fall to reasonable levels,
- foreign workers leave so that the Japanese will take over their jobs, even menial, to survive
- as the Yen will fall, it will be higher export amounts as other Nations will find Japanese goods cheaper, cutting off the middlemen thru online sales even for heavy equipment.
- with a falling Yen, imports to Japan will be more expensive, forcing locals to buy local, which there will be enough food as Japan is an agrarian society too, & farmers will have to be innovative to find local solutions to feedstocks & fertilizers.
- Property costs & rentals will have to equally fall, or else there would be no buyers or tenents, which will give relief to biz enterprises with lower rents, & new entrepreneurs to start biz.
- a return of manufacturing back to Japan. ( Economic theory that USA realized in 2016 - if manufacturing is outsourced & locals unemployed, who then will have money to buy Japan products made overseas?)
- a chance to regroup, reorganize & RE-INNOVOTE its Manufacturing abilities. It has the best engineers in the World & should not loose out to China. EV may be a fad, as many of the technical challenges had not been overcome. It will need Japanese engineering to find the solutions, the way it did to transistor radios decades ago.
B) Keynesian Model
- govt to use its Reserves to create jobs for its citizens, to breathe life into the economy thru infrastructure projects - upgrade existing ones or create new ones, but Not build roads leading to nowhere, but where for every Y$1 taxpayers revenue spent, there will be Y$3 in return, cash or in kind.
-Open up more landspace to build homes for families. Tokyo is just a small densely populated plot of land. Japan is made up of 4 large & largely empty vast lands beside agricultural needs which can be put to good use.
-build better transportation modes - roads & rails to connect up all the 4 islands chain for faster travel of Humans & goods.
These are just some ideas. The insignificant nobody me am sure Japan has better economists, & also sure that they would not let political differences get in the way of their loyalty to Japan & the Emperor.