When the value-added tax is incurred in Japan, Product prices will hike and the
demands will decrease. The individual company will struggle the decreaded
demands, and will try to transfer their normal workers to temporary
workers.
By doing so, they will be able to decrease the cost on
employment.
They move on from normal workers to temporary workers to contract
workers, to outsourcing workers, to foreign outsourcing workers.
Labour costs
will decrease and the individual company will pull down their product
prices.
The value-added tax will be deducted from worker's income, and worker will decrease their consumption.
This means the saving of payments of the value-added tax, and
beginning of deflation.