Takaichi Delivers Economic Order

At the starting point of her cabinet, Prime Minister Sanae Takaichi ordered her ministers to grapple with the issues that would be necessary for implementing her promises in the presidential election of Liberal Democratic Party (LDP) or the coalition agreement with Japan Innovation Party (JIP). The first focus of Takaichi looked to be on economic policies. 

On the first day of her cabinet, Takaichi sent out a letter to her ministers on October 22nd. Takaichi demanded in the letter to strengthen Japanese economy by changing people’s concerns on their life or future into hope. It contained three issues to deal with: achieving a strong economy, defending people’s life in local communities and enhancement of diplomacy and defense.

 

To achieve strong economy, Takaichi proposed introduction of “investment of crisis management” and “responsible and active fiscal policy.” She explained investment of crisis management to be preemptive and strategic investment on various risks and issues with viewpoints of economic security, food security or energy security. Responsible and active fiscal policy can be about compatibility between spendings and fiscal balance.

 

One of the immediate remedies on price inflation has been recognized as gasoline tax cut by eliminating temporary tax rate added on gasoline price. The LDP, JIP and Komeito agreed on abolishing that tax rate by the end of this year. However, the LDP proposed to maintain the rate by next February with governmental support for consumers through subsidy. They will discuss detail on it.

 

Takaichi requested Minister of Health, Labor and Welfare, Ken-ichiro Ueno, to consider deregulation of working time. Although current regulation introduced in 2019 sets a basic limit of working time at 45 hours a week and 360 hours a year, Takaichi hopes to extend the upper limit for employers to let their employees work. There has been a concern that the deregulation may cause deaths with overworking.

 

When she was elected LDP president earlier this month, Takaichi insisted that she would “work, work and work,” removing words of “work-life balance” from her mind. She said one of her strong points would be that she can work through the nights. This workaholic attitude of Takaichi invited concern on distancing herself from ordinary people who need moderate business life. It is necessary for her to explain what she is aiming at.

 

Minister of Finance, Satsuki Katayama, stressed compatibility between active spendings for economic growth and fiscal balance. While she promotes spendings to make the people hopeful for their future, Katayama insisted that she would not say that she ignores accumulation of fiscal debt. It is the key how this incompatibility of spendings and revenue can be balanced.

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