Selling Neo-capitalism

Trying to catch up with the efforts of recovery from infectious devastation in the world, Prime Minister Fumio Kishida raised his voice to sell his concept of updating Japanese society. In his policy speech on day 1 of extraordinary session of national Diet, Kishida insisted on promoting “neo-capitalism,” in which he would seek double track of growth and distribution, as a replacement of neo-liberalism economy. It seems to be a transition of Japan’s status from taking outstanding position in international economy to moderate and self-sufficient growth.

    Kishida argued that achieving neo-capitalism was a common goal of America or Europe in the post-COVID world. Based on the notion that capitalism brought prosperity to human society through efficiency, entrepreneurship or vigorous production, and that neo-liberalism after 1980s caused various inconvenience such as wider income gap or prevalence of poverty, he regarded Build Back Better of US Biden administration or NextGenerationEU as pursuit of new type of capitalism. He proposed Japanese version of human-friendly capitalism.

    However, growth under neo-capitalism looked like something unchanged from traditional conservative infrastructure policies. Named after his political mentor’s economic policy, Kishida upheld Digital Garden City Initiative that would address local problems including depopulation, aging of community or industrial decline with appropriation of ¥4.4 trillion ($38 billion) in the budget. While he also listed related policies up for scientific innovation, investment to clean energy or economic security, fundamental idea would be injection of resource into building infrastructure.

    Distribution policy the prime minister presented was something different from traditional social democratic policies of redistribution, in terms of seeking growth for stimulating consumption. Calling distribution of wealth “investment for the future,” Kishida announced new tax exemption for corporations that would raise worker’s wage to a certain degree. To build an environment of surge of salary, the government would declare new partnership between large corporations and small or middle businesses. Final goal should be rebuilding middle class.

    Major driving force for Kishida administration, anyway, must be overcoming of disastrous COVID-19. Quoting words of John F. Kennedy in State of Union Address 1962, “The time to repair the roof is when the sun is shining,” Kishida focused on the necessity of preventing measures for next major break of the virus. Although he promised early booster shots, it is still skeptical that the government can afford to secure enough amount of vaccine. There is no reason for Japanese people not to worry about sudden and broad outbreak of omicron variant. Post-COVID 19 era would be nothing but coexistence with anxiety.