Japan's government reacting far too slowly

Japanese Prime Minister Keizo Obuchi recently ordered his Cabinet to plan to cut taxes and boost spending on the construction of roads, bridges, dams, and other public works. The total cost could be as much as $230 billion.

But Japan's problems run deeper than the lack of financial stimulus. The only reason for this decision is to save face and make it look like the government knows what it's doing.

Indeed, as Finance Minister Miyazawa said, "We must avoid criticism that the government is failing to revive the economy because of a lack of fiscal stimulus."

Yet putting more investment into infrastructure will not solve the problem. That money would best be used bailing out its banking system, which is looking at nearly $1 trillion in bad debts.

And once the banks are bailed out, a task about four times greater than our Savings & Loan Crisis earlier this decade, Japan will need to remodel the industry, which suffers from lack of liquidity, transparency, and profitability.

While Japan fumbles plans for an economic recovery, Hawai`i will continue to suffer from its prolonged period of slow economic growth.

We should reconsider the way we market the Far East as soon as possible.