Roughly 20 years after the Japanese government first put up the banner of "from savings to investments," young people are showing a keen interest in investments, probably out of concern for their post-retirement funds. Deep-rooted wariness about investment losses, however, remains an impediment to a greater embrace of risk assets.
The focus will be on whether the government initiative can inspire the largely conservative public to pivot away from bank deposits.
"With this year as the first year of my 'asset income doubling plan,' we will promote, boldly and fundamentally, the shift from savings to investments," Prime Minister Fumio Kishida said in a video message at an event held by the Japan Securities Dealers Association (JSDA) and other organizations in February.
How does the government benefit from having people put their money into stocks instead of savings account? The government is trying to encourage people from investing their money into stocks, and giving them ample incentives, but does the benefits outweigh the costs? How does it benefit the government when the government can use the savings that finance their bonds and the government itself can invest into Japanese stocks?