The ruling Democratic Party of Japan is compiling a supplementary budget in excess of ¥4 trillion to head off the growing risk of a slowdown in the recovery. The plan is, however, a prime example of “too little, too late.” If the DPJ had had its act together, it would have had the supplementary budget ready by July, before it began preparing for the September 2010 election of the party’s president. That would have enabled the administration to get the measure passed by the National Diet in August, and implementation of the required stimulus would already have begun by now. As a result of its overly rosy view of the economy’s prospects, the DPJ has laid itself open to the charge that it allowed the contest for party president to get in the way of action it should have taken on the economic front. ... ... [Read more]