Abstract
This study focused on the anti-economic measures of the Osaka welfare allowance program and calculated its effect and influence on the local economy. Using the example of Osaka, I performed calculations with concrete data of Osaka. As a result, I determined that in 2003, the welfare allowance of 206.0 billion yen finally caused demand increase in the local economy of 345.3 billion yen. On the other hand, a reduction of income taxes only had an economic influence of 241.7 billion yen, and also, public construction spending was only 337.3 billion yen. Therefore, welfare allowances are understood to be a superior policy for stimulating the economy. Furthermore, when calculating the effect upon creating employment, only 25,474 employment positions were created by public constructing spending, and 19,560 employment positions were created by a reduction of income taxes, whereas the welfare allowance program created 27,685 employment positions.
