A contradiction in terms: Is it true that the Corona disaster is hurting small businesses? (Part 1 of 2)
1. According to the "Insolvency Situation of Small and Medium-sized Enterprises" published by the Small and Medium-sized Enterprise Agency, the number of insolvencies of small and medium-sized enterprises (SMEs) in 2021 was 6,030, a 22.4% decrease compared to the previous year. Compared to 2019, the year before the Corona disaster, this is a 30% decrease (SME insolvencies... January 2019 - December 2021).
This situation shows that SMEs, especially small and micro enterprises, have become "fatter" than before the Corona disaster, thanks to the subsidies, and are getting out of their financial difficulties.
3. the contradiction that the number of bankruptcies has fallen in spite of the Corona recession, which has been like a tsunami that has hit the country many times.
The government and the Liberal Democratic Party (LDP), under the leadership of an idiot prime minister who only cares about surviving elections, have been overly generous to small and medium-sized enterprises (SMEs), and this has led to terrible consequences for the future of Japan.
4. However, the number of insolvencies has only increased year-on-year in three months since April 2020 (April 2020, June 2020 and May 2021).
5. By capitalization, only those with a capital of 100 million yen or more have increased compared to 2019 (105.2% compared to 2019). In the others, the number of bankruptcies decreased by around 30%.
6. Furthermore, all sectors recorded a decrease compared to 2019. It is an astonishing fact that the Corona disaster did not cause any particular increase in bankruptcies.
7. Who is going to pay for the idiotic policies of the LDP and the current government to 'keep the companies afloat'?
The general public, of course.
Associate Professor of Physics, California Institute of Technology, USA
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