A total sum of corporate internal reserves has again recorded the new highest, while a labor distribution rate dropped. This is a result of the so-called Abenomics economic policy which began in the second-round Abe government inaugurated in 2012. The policy pretended to work for the sake of people, but in fact it encouraged businesses to gain the best conditions in Japan to do activities. How should we stop the trend?

LET’S WORK TO CREATE SOCIETY WHERE INEQUALITIES ARE DAMNED

Economic boom – for whom it benefits?

According to the Ministry of Finance on the Fiscal 2017 Corporate Statistics, a total of internal reserves of business entities, excluding finance and security sectors, marked the highest record, accounting 446 trillion Yen. On the contrary, the rate for labor distribution has dropped to the lowest, 66.2%. The result means a consistent economic policy of the Abe government inaugurated in the end of 2012. He told the economy would grow, if it boosted, and people would be rich – his words ended in an illusion. Profits on the side of big businesses and the rich are closely combined with poverty and anxieties of the majority of people on the other side – it is a clear fact.

The business circle and the Abe government have rolled back labor unions and the leftwing forces, strengthening the legal frameworks to ease exploitation and deprivation. In the last Diet session the government succeeded in approving a law that sets the maximum overwork hours a month at less than 100 hours, which exceeds the limit of Karoshi, or a death of overwork. Even with this criterion the so-called workers of highly professional level jobs cannot be managed appropriately.

The Abe government attempts to pass outstanding labor laws in the coming extraordinary session of the Diet which will start this month: they are to expand the arbitrary working practices and to introduce a money settlement scheme in sacking workers.

Deceptions on consumption taxes

A consumption tax rate is planned to rise in October, 2019. That will lead to an increase of the poor and deterioration of public services. That will then affect on small-and-medium sized businesses.

Consumption taxes used to be an instrument to reduce corporate taxes and income and inheritance taxes, which favors the rich. Successive governments have neglected revenue sources to be taxed: having taken political advantage of the financial deadlock, they have manipulated people. They keep telling that no debts would be transferred to the coming generations caused by the existence and aggravation of social services.

Consumption taxes are tricky: smaller, weaker businesses enjoy preferential tax measures in which a tax rate increase does not reflect on their transactions to purchase and sell goods. Exporters do not pay the taxes but they are paid back a tremendous amount by the government as an export drawback.

Economy should rely on right taxation

The Japanese economy relies on individual accountability and a violent jungle philosophy. We must convert this mechanism to one where economy relies on social solidarity and symbiosis. The economy should target creation of conditions in which people may work and live with dignity. Minimum wages should be raised so that disposal incomes may expand. Higher education should be offered free-of-charge to provide everyone with equal opportunities and to help students’ life.

As for smaller-and-medium sized businesses, a legitimate structure should be prepared to enhance re-production. Extraordinary internal reserves can solve the problems. Wealth obtained from economic activities must not be monopolized but be redistributed.

If minimum wages should be raised significantly across the nation, the problem would be alleviated of population concentration and drift between cities and countryside. Natural resources are rich in the countryside, while its economy cannot offer enough jobs. If the discrepancies should be diminished, people could lead a balanced life. The administration would be able to make a society tough enough against natural disasters.

Such a development should be extended beyond the country. The current international economic order globally exploits workers with low wages and absence of rights. It throws them away when they are unnecessary. The order would face a severe challenge.

Working people have rights to survive. When they learn about their rights, they can raise voices as a human being.

When a single man/woman dreams, that will stay as a dream. If people dream altogether, that will become a reality.

September 18, 2018