Administration led by Prime Minister Suga was formed September 16, following resignation of the former premier Abe Shinzo. In the first cabinet meeting the new government decided on a new policy line, which has two principles; one is its idea on the Japanese society, which says that ‘our society relies on efforts based on personal, local and public levels and human relations, and the other is its firm determination toward deregulation reforms by breaking up the not-unified, ministry-led administrative practices and the easy-following habit of precedents.

VITAL ELEMENT IS PUBLIC-LEVEL SUPPORTS

Prime Minister Suga Yoshihide told in the press conference held after the cabinet meeting that; the new government would succeed the current policies on the epidemic and the economy. He has touched on a newly established agency, the Digital Affairs Agency, and on medical treatment for sterility in which patients can enjoy insurance-covered benefits. Judging from the previous statements, merger and realignment of prefecture-based banks, reorganization of medium-and-small-sized companies and a lowering of mobile phone rates are included in the initiative.

Working population owes burdens

Premier told about the efforts of personal, local and public levels, the concept of which is stipulated in the 2010-version Party Program of the ruling Liberal Democratic Party (LDP). The first description is found in the advice given in 1950 by the Council on Public Services Scheme. It is the basic line on public services implemented after the WWII. Some say it is not new. But is it really so?

An era when a male breadwinner can easily find a job to support his family until his retirement has already gone. The pension, healthcare and elderly-care programs, which are supported by social insurances and are cores of the community-level services, are not sustainable now partly because of the low rate of births.

Nevertheless, the ruling bloc of the LDP and the Komeito has been reducing the corporate tax rates several times, while surging the consumption tax. That means burdens are unilaterally imposed on the working population. Today it is harder for a person and a municipality to support and sustain livelihood, and therefore, it is essential for the government to re-design to strengthen the system of public services. Under these circumstances, an emphasis on personal level efforts represents sheer neo-liberalism under a cover of conservatism.

It is Mr. Takenaka Heizo that advises on creation of the Digital Affairs Agency. It is true that Japan is less developed than the Scandinavian countries and Republic of Korea in terms of digitalization of society. The biggest reason of the fact lies in deep distrust of people in politics of the country. Information leaks and illegal withdrawals of cash from the accounts of individuals are rampant. Anxieties must be removed first.

Abe’s economic policy continues

New Premier talks about continuance of the Abe government’s economic policy, which has three rules, without any reviews. Is his stance right?

The first rule, the monetary policy, has no space to develop further. No exit strategy is seen. The second, the fiscal policy, evokes uneasiness among people as it has eventually piled up debts that may lead to raises of taxes and deterioration of public services. The third one, the growth strategy, has not attained goals. The Special Strategic Economic Zone Initiative, for instance, has ended in enriching crony companies of the ex-premier.

Concerning the mobile phone industry, it is, criticisms say, monopolized by the three enterprises. Does a new comer, Mr. Mikitani Hiroshi, President of Rakuten, commit in the Premier’s decision?

Media report that the policies on reorganization of local banks and medium-and-small-sized companies and a hike in the minimum wages are advised by business people belonging to the structural reform school. The plan may, instead, weaken local economies.

Premier Suga is reported to be not good at economy. He is likely to fall a victim of the financial circle.

October 13, 2020