politics

Will fiscal consolidation be a priority for ruling party's new leader?

11 Comments
By Keita Nakamura

The requested article has expired, and is no longer available. Any related articles, and user comments are shown below.

© KYODO

©2021 GPlusMedia Inc.

11 Comments
Login to comment

Will fiscal consolidation be a priority for ruling party's new leader?

From what happened in the past usually will make something that looks appeal to public, whether is really work or not that can be another debate

https://www.reuters.com/article/us-japan-economy-abenomics-analysis-idUSKBN25O0TT

0 ( +0 / -0 )

@sakurasuki

Will fiscal consolidation be a priority for ruling party's new leader?

From what happened in the past usually will make something that looks appeal to public, whether is really work or not that can be another debate

https://www.reuters.com/article/us-japan-economy-abenomics-analysis-idUSKBN25O0TT

Well, if in the article you read:

Now, Japan is paying the price as COVID-19 wipes out the short-term benefits brought by Abenomics, such as an inbound tourism boom, reflated growth and rising job availability.

On tourism, in her wisdom my mother always said: you can't export pristine beaches and endless blue skies...(read: if people stop coming in...you're done for! Not mentioning that Japan had already reached the tipping point of overtourism, making any further push on that a non-issue.

On job-availability: yeah, as in unstable, underpaid, dead-end jobs. No , thanks!

Abe’s failure to entice companies to spend more on capital expenditure has given Japan Inc a huge cash-pile that served as a liquidity buffer to weather the pandemic’s shock.

Not mentioning the cash that Abenomics channelled to those who already had cash. Average Taro and Naoko being footed the bill...

But the experience may give firms an excuse to keep hoarding cash rather than spend on new business opportunities, which could stifle innovation and weigh on Japan’s potential growth - factors Abe was focussed on addressing through the third arrow.

Aaah, the elusive third arrow that Abe never had the intention of shooting anyway as it would force LDP buddies' companies to clean up their act...

On Abenomics, the writing was on the wall already in 2018...

https://apjjf.org/2018/6/INOUE.html

...and before that...in 2014:

https://www.foreignaffairs.com/articles/asia/2014-06-16/voodoo-abenomics

Ultimately, the new guy running the shop just ends up with all the accumulated mess from the last 30 years (out of which 9 years of Abe). Hence, no chance to see any real change in a mid-range to long-range future and should we enter an era of revolving-door PMs again, we will have to consider a super-long-range future...

The only option is sunsetting the LDP, but again...

Funs and frolics ahead...

2 ( +2 / -0 )

the government's goal of putting its primary balance into the black by fiscal 2025 should be shelved until the Bank of Japan achieves its 2 percent inflation target.

It’s LDP nonsense. They originally had a goal for this back by 2010 from memory, but so out of control is their spending that they can’t even achieve the goal after the better part of 2 decades.

Spending needs to be well and truly reformed and the economy needs to be deregulated to make it flexible rather than rigid, that’s where sustainable growth could come from as the population shrinks.

Kishida's "new Japanese-style capitalism" is designed to narrow income disparity through wealth redistribution

Sorry how is that different from big government socialism?

after structural reforms promoted in the early 2000s under the government of Prime Minister Junichiro Koizumi created a "division between the rich and the poor," he said.

So were those reforms deregulation or just rearranging deck chairs? And did Kishida vote for it at the time?

he said at a press conference last week that a corporate tax break is worth considering for companies delivering wage increases.

More talk of special carveouts :(

It’s some free market capitalism that Japan needs.

-1 ( +0 / -1 )

@fxgai

Kishida's "new Japanese-style capitalism" is designed to narrow income disparity through wealth redistribution

Sorry how is that different from big government socialism?

While I have not issue with big government socialism because I am from Europe (with "socialism" being different from "communism"), the problem that I have with Kishida's "new deal" is that I don't see any difference with Abe's Abenomics promising a "trickle-down" of bread-crumbs which still has to take place...

But truth be told, back then when come-back kid (Abe) showed up again in 2012, did I have problems of seeing what the differences were between his "new" Abenomics and what other LDP governments did before that...

I say "emperor's new clothes".

2 ( +2 / -0 )

Oh yeah, and that one:

 Still, he said at a press conference last week that a corporate tax break is worth considering for companies delivering wage increases.

Company pays more (as in "how much" more actually??) to their staff, the company receives a tax-break to make up for it (read: the company doesn't lose out), while the tax-break is being paid by who again...oh yeah, the tax-payers (read; this includes the workers receiving the increase wage), so that either:

.those who don't get a raise pay for the raise other workers do get

.those who do get a raise...paid for it by themselves

As a worker, you got to LOVE LDPnomics.

4 ( +4 / -0 )

Oh yeah, and I forgot: if you receive a more in wages...of course...you pay more taxes...

So frankly, under these conditions, I would prefer to NOT get a raise. It's cheaper for my household.

0 ( +1 / -1 )

Neoliberal policies are a failure. Japan is looking increasingly bleak.

1 ( +2 / -1 )

Neoliberal policies are a failure.

These big government spending programs are your fathers’ “neoliberalism”? They aren’t mine.

Big government spending purportedly to get the economy going (after failing for two odd decades) is the precise opposite of what I think of as that.

One of the distinctive features of actual neoliberalism (in my understanding) is that it abolished privilege. Government’s role is not to be a player in the game.

Government spending programs invariably create privilege.

Abolishing privilege invariably makes the special interest groups unhappy - but if reforms are package together so that everyone loses their privilege at the same time as others - and therefore no longer has to bear the costs of the privilege of others as part of the package - that is seen as fair and everyone owns their chance to get ahead through their own efforts.

I see little whatsoever of the sort here in Japan.

-1 ( +0 / -1 )

Kono's policy on the primary balance is unclear, as the reform-minded maverick only said the issue should be left to "various discussions." Still, he said at a press conference last week that a corporate tax break is worth considering for companies delivering wage increases.

I am getting worried that he cannot think for himself. I suggest abolishing the sales tax which immediately helps low income persons.

0 ( +1 / -1 )

I suggest abolishing the sales tax which immediately helps low income persons.

And also makes expensive new houses and cars for the rich 10% cheaper…

0 ( +0 / -0 )

Will fiscal consolidation be a priority for ruling party's new leader?

Not really, that needs not be the main priority. Nation's security measures and independent foreign policies are equally important.

Anyway, whoever takes over would have to follow LDP's wills and wishes..

0 ( +0 / -0 )

Login to leave a comment

Facebook users

Use your Facebook account to login or register with JapanToday. By doing so, you will also receive an email inviting you to receive our news alerts.

Facebook Connect

Login with your JapanToday account

User registration

Articles, Offers & Useful Resources

A mix of what's trending on our other sites