
Ⅰ. Introduction The Japanese government raised the consumption tax rate to 10% in October 2019. Many people have criticized such tax increases, citing them as a cause of an economic downturn. However, the tax hike resulted from an increase in social security expenses associated with the aging of the Japanese population. Another source of revenue would have been sought or the control of benefits would have been requested if the consumption tax was not picked as a solution. In fact, social security benefits will expand from the current level of 120 trillion yen (the figure for fiscal 2018) to 190 trillion yen in fiscal 2040, according to a trial calculation performed by the Cabinet Office. Such an increase in social security expenses is due to the structural problem in twenty-first-century Japan called aging. It will not be all right when the economy picks up. ... ... [Read more]