Japan Encourages Young Adults to Drink More Alcohol to Boost the Economy

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Facts

  • Japan's National Tax Agency (NTA) on Thurs. launched "Sake Viva!", a campaign aimed at encouraging the country's young adults to drink more alcohol to counter a decline in tax revenue, after 2020 saw tax revenues from alcohol decline by about $800M.
  • The campaign has established a competition for applicants between 20 and 39-yrs-old to develop business ideas to boost the demand for Japanese alcoholic beverages including, sake, shochu, awamori, beer, whisky, and wine.
  • Since the beginning of the global pandemic, bars and other businesses selling alcohol in Japan have been hard hit by low sales. The NTA has subsequently been struggling with plummeting liquor tax revenues.
  • In 2020, alcohol tax revenue accounted for 1.7% of the country's revenue, a drop from 3% since 2011 and 5% since 1980. The drop has hit Japan's budget hard, particularly as it's already running at a deficit of more than a £290B.
  • The agency's data shows that the decrease in sales is related to a decrease in overall alcohol consumption, which has fallen in the country from an average of 100 litres per person per year in 1995 to just 75 liters per person in 2020.
  • The competition will run through the end of September. The best ideas will be further developed by experts before winners are announced in November.

Sources: Daily Wire, FOX News, CNN, Guardian, and BBC News.

Narratives

  • Establishment-critical narrative, as provided by CNN. It is wholly inappropriate for the government to encourage younger generations to consume more alcohol. This competition neglects the health risks associated with alcohol consumption and fails to show any sensitivity for people who struggle with alcohol related problems, especially considering that Japan's Health Ministry last year identified excessive drinking as a "major social problem".
  • Pro-establishment narrative, as provided by Guardian. Japan is doing what is best for the country's economy. This is an effort to use young and innovative minds to revive a plummeting industry. As always, the government is reminding people that they can purchase and drink alcohol responsibly while also fueling Japan's economic growth.