Conservative Big Government

Big government or small government? It is a permanent argument of democracy. In developed country, conservatives prefer small government and liberals big. Although it also is said about Japan, conservatives now need to choose big government. Can Japan still be said as one of the developed countries in the world?

Regarded as one of the most conservative Prime Minister, Shinzo Abe announced that he would continue the talk with DPJ and New Komeito through the National Conference on Social Security Reform. The conference was set by former DPJ administration for the discussion over how to adjust the social security system for the future of extremely aged society. As a new Prime Minister, Abe decided to maintain the trilateral structure of the talking, even after DPJ is opposition party.

Even though Abe is affiliated to a conservative group, to exercise fiscal conservative policy is another thing. A former PM, Junichiro Koizumi, introduced policies of radical deregulation. As a result of that neo-liberal economy, most people recognized that low-income workers lost their status of permanent employee and had to apply for temporary jobs, and that social rift between rich and poor had become wider. That frustration against the government caused historical defeat of LDP in the general election in 2009.

Political surge of new parties, such as Japan Restoration Party, is mainly based on that frustration against older parties. Most supporters for JRP live in Osaka area, where the ratio of residents requiring public income assistance is the highest among forty-seven prefectural districts in Japan. People who want big government actually consist of political majority, and their discontents lead them to suppoert more radical change of current situation.

Learning from the history of last ten years, Abe hesitates to include new-liberalism in his administration’s agenda. On the other hand, he doesn’t want to follow DPJ’s policies which lean heavily on welfare. Therefore he appeals the necessity of growth- oriented policies and targeted inflation directed by both Bank of Japan and Ministry of Finance, while keeping governmental assistance as current level. That ambiguous attitude on the handling of economy supposedly stems from his unpreparedness as the leader. Some colleagues of him indicate that he did not expect to win the election of LDP leader last September.

Providing people with jobs, higher wage, social security and public projects, mixed with printing bills and accumulation of national debt, will not said to be a sustainable policy, and may cause losing credibility on Japanese economy. Current consecutive rallies in stock market, which obviously has been an excessive expectation to Abe administration, may be resulted in much ado about nothing.