Corona subsidy (free money)

[Wales4rugbyWC23]

All this made me realized how actually I had it “easy” last few decades.

It required hard work of course but the environment was not harsh. It enabled to continuously have work and being able to save and ultimately own a place.

If I were a 20 years old something today I don’t know how I would feel? This crisis will push economies back 10 years and it may take that much to go back to some normale.

And this just for a few weeks of shutdown. How fragile all this is!

Even if I am too pessimistic it is a really distressing to know that next generation will most probably have less opportunities than mine.

If you look back at the last pandemic, the Spanish flu not only did it kill considerable more people than now, but they had the double punch of World War I. However, what happened afterwards was the 'roaring twenties' where the global economy boomed and technical innovation transformed society, notable in the use of the radio. Let's not talk about the 1930's.... but try to stay positive even in these challenging times there is a historical precedent for a dramatic improvement in all of our circumstances.

[Wales4rugbyWC23]

It seems that the Japanese government is being quite generous...

https://www.bbc.com/news/business-52450958

I think the 100,000 yen person support payment is quite generous and might just support demand. If you compare it to the 12,000 yen financial support during the 2008 financial crises. I remember thinking it was such a small amount it wasn't even worth claiming. 12 years later and now a family of four to suport, 400,000 yen will have big impact.
(Hopefully....)

[Cracaphat]

My ol' lady just finished and sent the application for the one mil support for businesses.She said it wasn't too bad except you had to jpg or pdf the form.Actually easier than our local prefecture's paperwork for applying!! But the bummer is that people will get taxed on that money

[jcc]

Keep in mind that these payments are supposed to work to stimulate the economy; they're "helicopter money." If you received the money and put it in a pillowcase you would short-circuit the intended effect but anything else you might do including buying necessities or luxuries (adds to demand to help address the demand shock), investing in stocks or bonds (supports financial markets) or giving to charities (adds to demand) helps address the extreme loss of economic activity from people staying home and many losing their jobs. Payments like this from the government add to Japan's public debt but that is in turn going to expansion of the Bank of Japan's balance sheet in hopes of holding off deflation.

While I completely understand this, this construct we humans have created, that we call an "economy" really is flawed and wasteful.

To promote continued consumption and working, we build things so that they do not last. They are designed to be replaced. We don't repair things that are perfectly fine, instead we throw them out. And that's good... for the economy. But it's incredibly wasteful. Wasteful not only of natural resources, but the hours spend working by people to create those things.

How do we fix the economy so that living frugally doesn't kill it? So that we can buy things for life and take care of them, and then enjoy the free time we all get from having to work less to produce things that are destined to be thrown out?

I really don't know. I guess I'll do my part with the 100k, spend it on fresh produce and maybe get some of that overpriced wagyuu the farmers are so desperate to get rid of now the tourists are gone. But this strange construct that we have built for ourselves to put ourselves into this life of work really confuses me.

[StockBeard]

How do we fix the economy so that living frugally doesn't kill it? So that we can buy things for life and take care of them, and then enjoy the free time we all get from having to work less to produce things that are destined to be thrown out?

I think a lot of people who start thinking seriously about their finances and how to make "money last longer" go into similar thoughts one way or another.

You've probably seen already a lot of smart advice on how you can help on those topics, so I won't go that route, but wanted to point out that 1) I share your concerns (I feel the virus - or rather, post-virus era - was a one time opportunity to steer the world in a better direction by globally rethinking our consumption habits and social safety nets, but I think it won't happen) and 2) TokyoWart has provided suggestions on how to use that money which I think are not "consumption for the sake of consumption". I'd say in particular his mentions of buying necessities, or giving to charities, feels like a use of the money that would stimulate the economy while not (at least directly) be a waste.

[RetroNewbie]

Has anyone come across a guide for this in English?
I'm trying to work through it in Japanese, with the aid of translation, but a lot of things are rather unclear or vague. (May be my terrible Japanese or may be the writing).

This is money to keep right, not something that has to be paid back? (though I assume it'll affect my taxes next year)
There's also talk of a 1M Yen loan for small businesses, so it's a bit confusing whether they're the same thing or different things.

Can anyone give a clear answer on how to calculate the 50% drop?
Is it same month to same month (Eg: May 2019 to May 2020). Pre taxes, deductions, etc?
What evidence do we need to provide to prove income in 2019 and 2020? (I don't have a 'sales ledger' for that month as I tend to do everything 'annually'. I guess I could put something together in Excel though).

Are there any specific requirements in terms of being registered as a particular type of business? I'm not, I'm just a freelancer who fills in a Form B when I do my taxes each year. (The page keeps talking in terms of 'business' or 'business owner', but I'm not registered as any type of business.)
I'm mainly on an 'itaku' contract with most of my income coming from one company, but I think that counts as being a freelancer.

Is the entire process online? I heard the online application form for the other 100k needs a myNumber card and card reader, which I don't have. Does this one?

I think my income drop in May is going to be very close to 50%, but not sure which way +/-. No idea for June.
The other 100k money will help to offset that for May, but I'm worried about June and beyond, so maybe it'd be good to apply for this as well, to give a safety net for the rest of the year.

Thanks in advance!

[RetireJapan]

I was thinking of doing a blog post on this, would that be helpful?

Right now, I am aware of the following potential financial assistance:

1. 100,000 yen payout to every resident of Japan, including children. Apply online or wait until you receive the postal application from your local government.
2. 1m or 2m payment to self-employed/small businesses. Need to show a drop in income (month this year vs. month last year). The payout is capped at 1m for sole proprietor or 2m for small business, or 12x your monthly loss, whichever is smaller.
3. possible rent subsidy (not sure of the details on this one, but I heard up to 500,000 yen a month for six months)
4. grant for closing over Golden Week/state of emergency. This depends on local government. Sendai is offering 400,000 yen, or up to 800,000 yen for multiple branches/locations.
5. loans of various types. Possibly no-interest, no collateral, and maybe even restricted to the business (ie no personal liabilty). Haven't looked into this year. Might also need a 50% loss of income.
6. wage support for furloughed staff: up to 90 or 100% of wages for furloughed staff. This seems like an absolute pain to apply for, and few people have actually gotten the money yet.

[KyushuWoozy]

Are there any specific requirements in terms of being registered as a particular type of business? I'm not, I'm just a freelancer who fills in a Form B when I do my taxes each year.

I thought you had to be registered either as sole proprietor (1 million) or as a company (2 million). If I'm right sounds like you won't be eligible.

[RetroNewbie]

I was thinking of doing a blog post on this, would that be helpful?

It'd probably be helpful to a number of people.
Personally, I think the 100k is pretty well known and covered elsewhere, and not too complex.
But some of the other ones are a fair bit more confusing. It's reasonably easy to get info that they exist, but harder to find clear details on them (unless you're good at reading Japanese)

I thought you had to be registered either as sole proprietor (1 million) or as a company (2 million). If I'm right sounds like you won't be eligible.

That's what I'm trying to work out. The info seems rather unclear, and I've read different things in different places.

If anyone finds out anything, it'd be much appreciated.

[KyushuWoozy]

If anyone finds out anything, it'd be much appreciated.

https://www3.nhk.or.jp/nhkworld/en/news ... ries/1097/

This article gives details of the various subsidies and loans available (there are lots). For the subsidy we have been discussing on this thread it mentions, "companies and sole proprietors, including freelancers" are eligible. It also gives a phone number to call for more details and information about walk-in centres if you are having problems applying online. Guess you'll find the definitive answer by calling the helpline or visiting one of the centres. Hope this helps.