The curse of primary balance has been lost for 30 years, and now is the time for fiscal spending.
2021-12-30
Category:Japan
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The lost 30 years were born from the curse of fiscal surplus
The curse of a primary balance surplus has become an excellent material for opposition parties to appeal to the government for fiscal austerity. Yoichi Takahashi has said that he does not mind fiscal stimulus, or printing money, up to the inflation target of 2%.
Both Prime Minister Abe and Policy Research Council Chairman Takaichi have set an inflation target of 2%. In the first place, the topic of primary balance became popular after the bubble burst.
Why not use fiscal stimulus to address the national crisis?
As many large companies go bankrupt, the government repeatedly imposes fiscal stimulus, resulting in deficits and financial bankruptcy. The bursting of the bubble was a national economic crisis.
So when is the government going to do something about the national crisis without spending money? In 1989, 32 of the 50 companies in the world by market capitalization were Japanese companies, but by 2019, there was only one Japanese company, and that number had disappeared. Ta.
Japan used to be the same as today's China
During the bubble period, Japan was to America what China is today. It is true that growth was not based on illegal business like in China, but there is no doubt that it was a threat to the American economy.
The United States should have predicted Japan's bubble would burst. Or maybe it's a country that can play a role in triggering this.
Why did Japan go for austerity?
If Japan had been able to implement bold fiscal stimulus after the bubble burst, it would have been possible to quickly overcome the aftereffects and return to a growth trajectory. Japan is among 11 countries subject to currency manipulation monitoring announced by the U.S. Treasury Department on December 3 of this year.
MEMO Trade friction is at the root of the current U.S.-China relationship. In addition, the defense of East Asia was also involved, and Japan at the time was also experiencing trade friction between Japan and the United States.
30 years of innovation, only to be robbed
Even after the bursting of the bubble economy, Japanese companies have continued to innovate in a variety of ways. i-mode was the world's first mobile phone to connect to the Internet, the all-in-one concept of integrating a camera, calculator, memo pad, etc. in a bag into a mobile phone, and mixi was the original social network.
These ideas became the exclusive domain of American GAFA. Even though Japan was in the bud of creating a new industrial structure, it ran out of water and nutrients.
Only Councilor Sanae Takaichi was able to clearly answer these questions
So why or who put a stop to it?
Internal pressure, external pressure, various things can be imagined. Japan's balance sheet shows that its finances are sound, and fiscal stimulus will not cause a national fiscal collapse. This is exactly what was at issue in the last presidential election. There are two points: fiscal spending and national defense.
Councilor Takaichi was the only one who clearly answered that question, and I had no idea what the other candidates were saying.
POINT Japanese economy continues to fly low. We need a rocket engine to get back on the growth track.
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TSE market capitalization returns to number one in Asia - Expectations for Japan's competitiveness after withdrawal from Chinese investment?
On the 11th, the total market capitalization of stocks listed on the Tokyo Stock Exchange exceeded that of China's Shanghai Stock Exchange. It seems that the TSE has returned to the top spot in Asia for the first time in about three and a half years. Various things are being talked about, including a move away from investment in China and expectations for Japan's competitiveness to recover. In the first place, the current strange international situation is the result of developed countries investing in dictatorial countries such as China and Russia.
In 1973, the G7 once accounted for 65% of world GDP. That's the GDP of only seven countries. This was seen as a monopoly on the world's wealth, and problems in developing countries were discussed. At that time, the world was also in the era of the Cold War, but the Cold War itself was at least a better era than now. Economic and political exchanges between communist and capitalist countries were closed off and blocked by a barrier called the Iron Curtain. Russia and China are calling for a return to the Cold War era, but is that really the case? One could argue that the Cold War era was the era with the least number of wars in the world.
After the collapse of the Soviet Union, the countries of Eastern Europe collapsed one after another. China also pursued a path of liberation and reform, aiming to become an open nation. After the fall of the Berlin Wall, the world went crazy and thought the era of tension was over, but that was not the case at all. The loss of balance in the world has led to localized conflicts. Issues that were not highlighted during the Cold War era have been exposed as tensions have eased. Various things have been said about this, and while that may be true, I believe that it is essentially a matter of money.
What began with the collapse of the Cold War was global capital, or so-called globalism. Globalists are talked about as a conspiracy theory on social media, but there is no interest in knowing who is behind it. The problem is that the era when business and investment in authoritarian countries began can be thought of as the collapse of the Cold War. Did they simply think that the world would turn to democracy once communism fell? What is clear today is that the country has spent decades cultivating a state in which its domestic market is opened up to the capitalist state as much as possible, and wealth is distributed by a dictator.
The Cold War era was a great time. It was a time when the world was divided based on ideology, and it was a rational and peaceful time. The world should once again create an iron curtain of democratic and non-democratic countries. We no longer need to care how much wealth the G7 makes. Only countries that choose the democratic state form can receive democratic investment. As long as we continue to be a dictatorial nation, we should just live with the economy of dictatorial nations. You should rethink that. However, there will be some remorse for the times when we grew a nation that grew fat and threatened us with weapons.
Just because there is a labor shortage doesn't mean it's okay to collect labor from anywhere - let alone anti - Japanese countries.
Even if we overcome deflation and restore international competitiveness through the fiscal stimulus advocated by the late Mr. Abe and Mr. Takaichi, and even if the total amount of money increases and wages rise, if the economy becomes rich, this means that domestic production will rise. , it is said that even with the current production volume, it will no longer be possible to make things as the population declines, so if the production volume increases, there will be an even greater shortage of personnel.
The current dual wage structure for dispatched workers is simply a measure to compensate for the domestic unemployment rate by relocating production bases to emerging countries due to the strong yen. On the other hand, if the yen depreciates, it will become possible to move production bases back to Japan, and some companies have actually returned to Japan amid the current depreciation of the yen. If production bases return, GDP and tax revenue will increase.
In other words, this is the economic growth that the people want, but what is crucially lacking is human resources. It is difficult to believe that Japan's industrial structure, which is dominated by manufacturing, will be easily replaced by AI. While Japan's competitiveness will increase if Abenomics and Mr. Takaichi's economic policies are implemented, I imagine that it will also lead to a shortage of labor in Japan.
Although there was a shortage of soldiers during the Greater East Asia War, it is said that only about 1.6% of recruited soldiers from the peninsula were able to join the Japanese army. If they don't understand the Japanese language, Japanese culture, or the purpose of war, the entire unit will suffer. Even Japanese women were able to work under the Women's Volunteer Corps Ordinance after passing various hurdles, and those who passed were given the approval of the local governor at the time.
There are people in Europe and America who think it would be a good idea to make immigrants and illegal immigrants work, but do they want to make the same mistakes and go down the path of creating social unrest? If human resources are absolutely necessary, the host countries should be limited by considering cultural background, historical and diplomatic compatibility, and Japan should even be involved in the education of Japanese language and culture. It would be better to abandon ideas such as procuring labor from countries that provide anti-Japanese education now.
The political reform outline of 1989 has become a mere shell - What is Prime Minister Kishida's formulation of
One faction after another announced that they would be disbanded, and Prime Minister Kishida also mentioned the dissolution of the Kochi-kai. Looking at the Political Reform Outline drawn up in 1989, we can see that it does little to address the current party ticket issue. This is an outline adopted by the Liberal Democratic Party in the wake of the Recruit Incident. Prime Minister Kishida has said that he will formulate "new rules," but what is the position of the political reform outline that his own party has drawn up in the past? You can read the full text of the outline by clicking on the link, but here we will describe the table of contents and main points.
Excerpt of the Political Reform Outline
Revising and strengthening the Code of Conduct and the Political Ethics Review Board
Enactment of law to disclose assets of members of the Diet to establish political ethics
Strengthening the ban on donations to ceremonial occasions, etc.
Regulations on business card advertisements, New Year's cards, etc.
Strengthening regulations on posters, etc.
Reducing personnel and office costs
Stock trading regulations
Restraint of parties and new regulations
Concentration of donations to political parties and support for member activities
Expansion of public aid to members of the Diet and examination of political party laws focusing on state subsidies
Fundamental reform of the electoral system
Reduction of total constants
Correcting disparities
Fundamental reform of the electoral district system
Exercising the uniqueness of the House of Councilors
Reform of the current proportional representation system
Reducing the total number of constants and correcting the imbalance in the allocation of constants
Enhancing deliberations and easy-to-understand parliamentary management
Respect for majority rule
Achieving efficient parliamentary management
Determination to remove and eliminate the harmful effects of factions
Transition to a modern national party
Reflections of tribal members
Improving the number of winnings system and ensuring that rewards and punishments are mandatory
New rules for determining candidates
Establishment of decentralizationMay 23, 1989 Political Reform Outline
Has anything been achieved in this? Looking at the recent party ticket issue, it appears that it has largely faded away, but Prime Minister Kishida recently announced that he is considering disbanding the Kochi-kai. Mr. Nikai's Shijo-kai has announced that it will be disbanded, and the Seiwa-kai, which started it, will also be disbanded. Was it because of the faction itself? In short, it was probably a matter of not reporting political funds. Looking at public opinion to date, it appears that the majority opinion was that the existence of factions themselves was not a problem as a forum for policy discussion, and the prosecutor's investigation also focused on undocumented issues.
Prime Minister Kishida has said that he will create new party rules while dissolving factions, but first he will create check items from this political reform outline and evaluate each item in stages to see what has been achieved and to what extent. Why not consider it? Instead, they will consider "new rules."
The negative reason for the creation of factions is related to the structure of the parliamentary cabinet system. Personnel decisions within the party are all about internal party theory, and almost everything is shaped by interpersonal relationships. Your treatment will change depending on which trend you go with. Since the prime minister is the leader of the largest ruling party, the choice of leader is based on internal party theory and is determined by votes from party members based on their factions. On the other hand, if we adopt a dual representation system, no matter how many theories we create within the party, the top positions are decided by the people, so there is little point. It is said that in the United States, which has a presidential system, there are almost no cliques like there are in Japan.
It is said that one of the reasons why Japan has adopted a parliamentary cabinet system is to limit the authority of the top government. The reason is that they do not have much authority in the sense of reflecting on past wars after defeat. For this reason, Japanese politics takes a very long time to make decisions. In that sense, it can be said that the system is very vulnerable to emergencies. In a dual representation system, the people choose the top person, so the quality of their votes is different from that of other members of the Diet. Furthermore, the number of votes that would be obtained based on the assumption that all citizens would participate in the vote would be vastly different. Members of the Diet are simply elected in the regions in which they run for office. For this reason, the president is given greater authority than the prime minister, who is elected by members of the parliament. This authority also exerts great power in emergencies.
Quad's strategy is geopolitically rational; simply dispersing the Chinese military will give it an advantage.
China causing border problems in all directions
Military expenditure is just the total amount
Regional dispersion reduces military strength by half
Chinese encirclement should be strengthened
China has long borders and its strategy should be to engage in peaceful diplomacy with neighboring countries, but for some reason the opposite is true for that country. In that respect, the United States is smart and has formed a North American alliance with Canada and Mexico, and among the countries with which they share borders, I think Russia is the only hostile element.
China is so selfish that it is happy to make enemies in all directions, but Quad is outwitting them. Comparing military expenditures by country is helpful, but it is on a different level from practical ability.
In large countries, military power is dispersed. Will Yunnan's soldiers and tanks be able to participate in the fighting in Fujian? Even if it is counted as military expenditure, it is not a real military force.
If Japan, the United States, and Taiwan cooperate in the event of a Taiwanese emergency, many Chinese forces will head there, but what will happen if the Indian army invades the Kashmir region during that time?Australia, Vietnam, and the Philippines will suppress the Spratly Islands. be able to.
South Korea's geographical advantage in the Quad lies in its operations in the Northeast, but Moon Jae-in seems unable to understand this at all. In the event of a Taiwanese emergency, it would be a good idea for countries with border issues with China to close their borders one after another.
Upstream business strategically conducted by Japan.A form of processing trade in which Asian countries, including Korea, assemble and export them.
upstream business used to be a common practice.At that time, supply was scarce in the balance between supply and demand and supply were in short supply.The raw material is the most upstream and the final product is the downstream.Considering distribution, retailers sell to final consumers are the most downstream.If water doesn't flow, you can't do business, but in the age of oversupply, the story will change.The downstream retail stores are more powerful than the upstream manufacturing industry.Japan's 7-Eleven is a symbolic example of this, and OEMs want large companies to build private brands, and manufacturers want 7-Eleven to sell their products.
Japan has developed its upstream business.The strategy is to start with basic research, develop industrial machinery, and manufacture things require Japanese basic technology.Regarding the revision of export conditions for three strategic substances, including hydrogen fluoride, the South Korean government's insistence on supply chain integration means downstream integration, which is intended to put pressure on upstream manufacturing.
Lawmaker Matsukawa of the Liberal Democratic Party affirmed to the world that the global supply chain will not be in trouble.As they say, The world's supply chain never collapsed .
Almost all manufacturing industries in Korea are operated by Japanese industrial machinery and chemicals and parts manufactured in Japan.Currently, They are manufacturing by the basic parts imported from Japan.