Japan's main opposition party vows to improve pension system

Where would CDPJ get the additional money to support this? The country is way too broke to even pay for the current social programs. Every PM from Tanaka has borrowed money to support social programs without paying the debt off. So don't hold your breath for the CDPJ to come up with "new" programs to support the longer living elderly people without paying for it.

Where would CDPJ get the additional money to support this? 

Guess you didnt actually read the entire article huh?

The CDPJ also vowed to freeze the government's plan to raise the consumption tax from 8 percent to 10 percent in October, but said it will review the current corporate tax rates to secure funds to finance new programs worth up to 2 trillion yen.

They hit the nail on the head with this! Corporations are making money hand over foot, record profits reported by many, yet the people who work for them are working for wages that were decent 20 years or more ago!

Jack the corporate taxes if they dont pay their workers better!

Better pay means increased spending, increased spending means increased tax revenue, both which should be sustainable! Even with an aging workforce!

Wait, isn't this the same political party, or one of the descendants of it, that gave us the increased consumption tax some years ago? Which was supposed to be used to shore up Japan's finances incl pensions?

Japanese politician's election promises are as hollow as a ballon. They just say what the people want to hear and are never held accountable for their promises. Who remembers all the guff Abe spouted in his first election campaign? His priorities were to fix the child care crisis, increase salaries and equal rights in the workplace to get more women in to the workforce, none of which have happened after nearly 9 years in office. I'm glad I don't vote. I'd vote for Crusty the Clown over any of these circus performers.

Here's a way to start although I know it's only wishful thinking. You have a dwindling work force hence, lower tax revenue to fund anything that's going to be necessary for the pensioners. Reduce the number of politicians in the diet and reduce their pay, perks and their severance and pension. That way, only the few who want to really do something for the good of the people will actually run for office. In other words, weed out the leeches. Increase corporate tax for the upper tier corporations unless they pass on dividends to their employees' wages or pension. Do not increase corporate taxes for the lower tier since many are small business owners who will in all probability be working even after they are beyond the legal retirement age. Raise the consumption tax but do not tax food, water and medicine; the elderly will be living on a fixed income and deserve the basic necessities as a right. Increase the income or reduce the cost of living, or a combination of both.

Ahh a nice phrase to go with recent headlines...(how original)

With what money (we have massive debt) will they be improving things?

Reduce the number of politicians in the diet and reduce their pay, perks and their severance and pension. That way, only the few who want to really do something for the good of the people will actually run for office. In other words, weed out the leeches

While on paper this seems like a good idea, in reality what you would end up with is a Tokyo-centric national government that would not benefit the country as a whole.

Since the PM is not elected in a nation wide vote, but from within the ruling party, all any party would need to do is win the larger electoral districts and they would end up running the country.

 Raise the consumption tax but do not tax food, water and medicine; the elderly will be living on a fixed income and deserve the basic necessities as a right. Increase the income or reduce the cost of living, or a combination of both.

The next raise in the consumption tax already has far too many exceptions in place. The details will be coming out again prior to the increase taking affect. Food and basic necessities are already in place. These exceptions were instituted because just about the entire increase is earmarked for childcare and education and to keep the elderly on board with the increase, the LDP created a load of exceptions to the tax.

Where would CDPJ get the additional money to support this?

The programs are funded in yen. So the operative question where is Japan going to get yen. The answer to that one is simple.

Japan's main opposition party vows to improve pension system

They loudly promised but loudly failed. Splitting or Changing the name of parties wouldn't be able to deceive voters any more.

@Yubaru

Better pay means increased spending, increased spending means increased tax revenue, both which should be sustainable! Even with an aging workforce!

Spot on. One of my British investment banker friends has been saying the same thing for years. Even Henry Ford for all his faults understood that the more you pay workers, the more they spend, and that’s good for business overall.

Japanese politician's election promises are as hollow as a ballon.

Hardly a peculiarity of Japanese politicians.

Reduce the number of politicians in the diet and reduce their pay, perks and their severance and pension. That way, only the few who want to really do something for the good of the people will actually run for office.

Much more probable that the only people in the Diet will be plutocrats like Aso Taro who are so wealthy it makes no difference to them whether Diet members have a salary or not.

showchinmonoToday  08:37 am JST

Japan's main opposition party vows to improve pension system

They loudly promised but loudly failed.

That was the DPJ. It would be extremely disingenuous to suggest or imply that the CDPJ are the same party. Whatever the DPJ's failures were in government were they have no bearing on the CDPJ's current policy proposals, but I don't suppose you have a lot to say about them or why the LDP's policies are any better.

I get more money for the rest of my life from the US Government than the Gov't of Japan could even fathom giving Japanese Citizens. From what I have read the Japanese Pension System is continually broken, and continually failing the people.

This is awful. Pensions and security nets are no longer sustainable. Japanese people should be taught to invest their money and make it work. Not just put it in a box and sit on it. This policy would only add to the massive deficit spending that Japan already is stuck in.

 From what I have read the Japanese Pension System is continually broken, and continually failing the people.

I wonder where you got the information that the system is "broken"? The problem is quite a bit more complex than just saying so.

Those who paid into the employee pension plan, or kosei nenkin (厚生年金), will receive, on average, 50 percent of the wage they earned while working. For example, if you were receiving ¥300,000 per month while working, you will receive benefits totalling ¥150,000 per month.*

Those who paid into the kokumin nenkin (国民年金), or national pension, will receive benefits totalling ¥779,300 per year. It’s not as much, but people on the national pension plan pay less into the system while they are working, so they receive less when they retire.

The problem is with the national pension, which pays quite a bit less than the employee plan. The funding for the current pensions and what is being expected to be paid out over the coming years is substantial.

Aso talked about the 20 million yen and many balked at his statement, as well should be, because not everyone is collecting the "average" amount. He took the basic information an multiplied it by about 30, without thinking about cost of living, increased medical costs and other costs associated with getting older. Day care, transportation, etc etc etc.

150,000 X 12 = 1.8 Million per year/1.8 million X 20 years =36 Million yen (Employee Plan)

780,000 X 20 = 15.6 Million over 20 years/ 23.4 Million over 30 years (National Pension Plan)

He took the national average for the national plan, and assumed it seems, that everyone paid in the full amount. Which is BS for the average worker today.

Like I said it's a more complex problem, but Aso does think that way because it does not affect him!

https://blog.gaijinpot.com/understanding-the-japanese-pension-system-part-3-3-how-do-i-collect/#comments

https://www.nenkin.go.jp/international/english/nationalpension/nationalpension.html

The CDPJ also vowed to freeze the government's plan to raise the consumption tax from 8 percent to 10 percent in October, but said it will review the current corporate tax rates to secure funds to finance new programs worth up to 2 trillion yen.

They hit the nail on the head with this! Corporations are making money hand over foot, record profits reported by many, yet the people who work for them are working for wages that were decent 20 years or more ago!

> Jack the corporate taxes if they dont pay their workers better!

> Better pay means increased spending, increased spending means increased tax revenue, both which should be sustainable! Even with an aging workforce!

Exactly! Finally a political party that sounds like it knows what it is doing!

I understand that in Japan it makes sense politically to focus on the elderly, who by far represent a majority of the voting electorate, but does anybody care about the up and coming generations? Without them, there is no pension system, period.

Any party derived from the Democratic Party is the worst. Fit for they. "It is possible for anyone who can not realize but only assert."

TravelmasterToday  11:36 am JST

Any party derived from the Democratic Party is the worst.

If you can't or won't explain exactly what makes them worse than the LDP I see no reason to pay much attention to that comment.

Simon- Brilliant!

ALL ABORAD!!  Another scheme to keep fueling their appetite on their frenzy investments. Trilions has been poured into infrastructure hoping to gain huge kickbacks and ended up with massive loss - unable to payout retirees.

I'm not sure what can be done to be honest given the demographics and huge national debt in place of a social wealth fund.

However, it would be nice to have a government that cared more about this than changing Article 9 and giving away land to kindergardens that inculcate kids with militarism.

Lets see.

That was the DPJ. It would be extremely disingenuous to suggest or imply that the CDPJ are the same party. Whatever the DPJ's failures were in government were they have no bearing on the CDPJ's current policy proposals

Simon, I don't think it's inappropriate to hold Edano to account for his past positions. He was economy minister under a godawful PM who "staked his political life" on passage of the consumption tax from 5-10%.

https://en.wikipedia.org/wiki/Yoshihiko_Noda

Has he since truly evolved, perhaps. Likewise, I hope he's abandoned any commitment to the neoliberal nightmare TPP that his party backed. I like my politicians to have clear, consistent ideologies. People who morph into progressives b/c it's currently popular or as a way to distinguish themselves heading into an election--that deserves to be questioned. So, Edano, you were a neoliberal who supported regressive taxes until only 5 years ago--what's changed beside the name of your party and the amount of seats it holds? Why is the sales tax hike a bad idea now but you fought for as late as 2012.

If I were a Japanese voter, I'd certainly want to see clear commitments on the part of Edano and the CDPJ that what they stand for now will be what they stand for should they ever gain power.

All that said, of course, they couldn't be worse than our present leaders, but I won't be getting all hope-changey anytime soon.

Anyone can say they will address the problem without any specific plans. To begin with, they do not have the detailed data and the analysis in their hands anyway.

In any case it is a nice political "play" to "emotionalize" the public in their favor... hopefully.

jcapanToday  02:17 pm JST

Simon, I don't think it's inappropriate to hold Edano to account for his past positions. 

Fair enough. At least though, all the conservatives have bolted for the DPP and Kibo No To so the party may be less of a shambles ideologically, and it's encouraging that Edano doesn't want to form alliances with other parties that would doubtless involve lots of shabby compromises. So I still think there's enough to differentiate the CPDJ from its predecessor that it would be very misleading to imply they're basically one and the same.

I'm not very optimistic about them though. Edano isn't exactly stealing the show, the no-confidence motions are a stupid waste of time and they just don't have enough candidates to pose a serious threat to the LDP's majority.

it's encouraging that Edano doesn't want to form alliances with other parties that would doubtless involve lots of shabby compromises

Yes, this is a good sign. Now if they can just keep the same party name for a while, build and maintain a consistent governing philosophy, and focus on a few key issues, driving them home like a sledgehammer. The opposition here always sounds so reactive--against the LDP position du jour--as opposed to positioning themselves as a cogent alternative with the tools and capacity to lead Japan.

I maintain that most Japanese aren't enthusiastic about Abe/the LDP but they have grave doubts that any other party can take their place. Minshuuto did Edano's present party no favors in this regard, as their time in power was marked by bad luck, poor leadership and terrible judgment.

jcapanToday  07:26 pm JST

Yes, this is a good sign. Now if they can just keep the same party name for a while, build and maintain a consistent governing philosophy, and focus on a few key issues, driving them home like a sledgehammer. The opposition here always sounds so reactive--against the LDP position du jour--as opposed to positioning themselves as a cogent alternative with the tools and capacity to lead Japan.

I maintain that most Japanese aren't enthusiastic about Abe/the LDP but they have grave doubts that any other party can take their place. Minshuuto did Edano's present party no favors in this regard, as their time in power was marked by bad luck, poor leadership and terrible judgment.

Agreed on all points, especially about the consistent governing philosophy. At the same time though I think an effective opposition leader should be able to command attention and hammer the LDP at every opportunity. It's a pity that there doesn't seem to be anything like the UK weekly Prime Minister's Question Time in Japan, but I suspect Abe has had a hand in that.

I am not going to debate. The party currently in power when the Fukushima nuclear accident occurred was the Democratic Party. It is the Democratic Party that approved continuous use without decommissioning the Fukushima nuclear power plant. The Japanese　people, especially the people of Fukushima prefecture, have not forgotten what EDANO YUKIO did. He is a person who exposed many citizens to radiation. If they became an opposition party, it's like I say it's not my fault. Those who were at the center of the administration at the time of the accident were not responsible for taking responsibility and leaving the politician. At least, We can not trust anyone who was a Democrat.

Bu ha ha CDPJ is different from DPJ? What are you looking at or thinking of?

CDPJ is a party derived from the Democratic Party. He talks about policy, but there is no talk at all. In other words, there is a problem with feasibility. It has not changed since he was in the Democratic Party.

showchinmonoJune 25  08:31 pm JST

Bu ha ha CDPJ is different from DPJ? What are you looking at or thinking of?

You might have an idea if you took the time to read the comments. If you can't or won't that's your problem.

TravelmasterJune 25  08:49 pm JST

CDPJ is a party derived from the Democratic Party.

Not the only one. The others are filled with ex-DPJ people who really belong in the LDP.

How?

There will be more retirees adding each year.

While there are fewer and fewer young people to support retirees.

There is no good solution for this.

TravelmasterJune 25  08:12 pm JST

At least, We can not trust anyone who was a Democrat.

But you can trust the LDP, who were basically asleep at the wheel during all the decades that the problems with nuclear power and the pension system were piling up? How is that?