Japan's Shocker of a Recession, Band-Aid's Cringeworthy Song and More

JAPAN – Rough morning in Tokyo: Japan is officially in a recession. And not a small one. Japanese GDP fell at a 1.6% annualized rate in the 3rd quarter, after a whopping 7.3% contraction in the 2nd quarter. Two consecutive quarters of contraction: that's a recession, and not one of those tiny minus-point-something-percent ones we're used to in Western Europe. All the more shocking as analysts predicted a 2.1% growth rate. So what's happening?

For a couple decades, Japan's problem was deflation. People kept delaying purchases and investments because prices were constantly falling, making getting a better deal as easy as waiting a day. Or more. Japan broke the cycle with decisive economic policy – the "Abenomics" of Prime Minister Shinzo Abe – including a sales tax hike from 5 to 8 percent on April 1 that did result in inflation rates not seen in decades (around 3%). But the shock to the system might have been a bit too strong. The Japanese did not take kindly to the price hike and largely stopped spending, especially on big-ticket items they could delay, like housing – which entirely defeated the purpose of the policy. The inflation rate has started to fall again, as well as job creation, as Tokyo's central bank attempts a dramatic stimulus. Proof once again that in economic policymaking, the best intentions often backfire.

This turn of events means Shinzo Abe is likely to delay a further sales tax increase to 10%, slated for next year. As his popularity wanes, Abe may also call early snap elections to get a new mandate – four more years instead of the two now left in his term – to pursue his "Abenomics" before his disorganized opposition can step up.

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M&A LAND – While large tech companies lately seem to think leaner is better, other industries still very much believe in mergers. Halliburton will acquire Baker Hughes for $34.6 billion. Yes, even that Whatsapp deal is small in comparison. The two companies provide oilfield services (rigs, offshore platforms, drilling technology...). And, as LinkedIn Influencer Jill Schlesinger writes today, there's still plenty to drill for. Meanwhile in pharma, Allergan is rumored to be near concluding a buyout of $65 billion by Actavis, thus escaping the hungry eyes of Valeant and activist investor Bill Ackman. Yes, that's 3 times Whatsapp.

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WHAT'S ON YOUR PLAYLIST? – Other industry, other rumors. Uber is slated to announce a deal with Spotify to allow you to blast your own playlist through the car's speakers. (The announcement is for today, but the New York Times' Mike Isaac got to loosen some lips earlier.) With such a deal, both companies put their services in front of even more people (though I suspect the customer bases there overlap quite a bit) and give them more reason to choose their services rather than a competitor. And Spotify gets to change the topic from its battle with Taylor Swift.

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CRINGE – Spotify may not need Taylor Swift if it can bank on the star power of this Christmas' likely hit song. But the song is making many cringe. Band Aid's 1984 hit "Do They Know It's Christmas?" was re-recorded to raise funds for ebola relief. The song premiered on the UK's X Factor last night and sales start today. It'll even be exempt from sales tax in the UK so more funds can go to charity. Thirty years ago, the song was recorded to provide funds against famine in Ethiopia. It's been re-cast twice already since, for various causes. (The video is here. Warning: it starts with shocking images of an ebola victim – only to cut to beautiful people in front of paparazzi.)

While the intentions are of course laudable, to critics the song perpetuates the cliché of Africa as a vast, indiscriminate space of despair and misery. Just look at the lyrics (from the new version – the 1984 lyrics are even more painful):

No peace and joy this Christmas in West Africa. The only hope they'll have is being alive. Where to comfort is to fear. Where to touch is to be scared. How can they know it's Christmas time at all."

The 2014 version improves on its predecessor by not equating one country with a whole continent – one that is rather huge – and having a bit more diversity in its performers, but, jee, you'd think all 340 million people in the 18 countries that compose West Africa only have ebola on the brains. Not the business they're starting, that date that went terribly, the homework that's due or how they're going to manage to get that promotion, get that apartment and get their kid to school. As Timothy McGrath writes on GlobalPost, and I couldn't say it better:

Band Aid's patronizing, cringe-inducing, eyerolling (although presumably well-meaning) project relies on and perpetuates a set of well-rehearsed and extremely damaging stereotypes that lump the people and nations of the African continent into a single, imaginary "Africa " where nothing ever happens except for disease, conflict, and famine. (...)

Like all continents, Africa has its share of humanitarian crises, but disease, war, and famine aren't any more unique and endemic to Africa than they are to anywhere else. Africa is a continent with 54 countries, 1.1 billion people, and more than 20 percent of the world's total land area, and without a layer of heavily applied racial stereotyping, "Do they know it's Christmas in Africa" makes about as much sense "Do they know it's Monday in Asia?" ( Read the full story.)

And if they don't think about Christmas in West Africa, maybe they'll be excused – they're 70% Muslims. I'll leave you with the best response I've seen...

tl;dr: Ebola is a tragedy and a crisis that needs to be fought. This may not be the best way. If you want to donate to ebola relief, here's some information from the UN. No need to buy a bad song.

Update: Commenter Michael Hodgson shared this great talk by Nigerian author Chimamanda Adichie to further the debate. Thanks.

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