Replacing Abenomics

This guy seems to be convinced that he should rather speak a baseless story, disguising people with personal determination, than presenting accurate perspective with honesty. Prime Minister Shinzo Abe announced in a press conference on Thursday that he would create additional economic growth to the extent Japanese gross domestic products reaches ¥600 trillion. “Abenomics is stepping into the second stage,” declared Abe without successful conclusion of the first stage. After unilateral passage of new security legislation, he believes that the public will wear any color he likes.

Abe was trying to shift policy focus from national security to economics which his administration firstly tackled. One action he made was replacing “three arrows” for economic growth. While he raised positive monetary policy, bold fiscal policy and growth strategy with structural reform as initial three arrows, Abe referred to strong economy, support to raising kids and social security as new three arrows. In short, he was focusing on welfare policies to achieve a goal of his economic policy.

To reach that goal, he stressed importance of demographic policy. Abe proposed increasing birthrate from current 1.42 to 1.8 and maintenance of a hundred millions of Japanese population in fifty years later. To achieve that goal, he promised various policy measures including zero job loss with family nursery, society of life-long activeness, zero waiter for preschool entrance, free education for infancy or more houses with three generations. Without any actual plan or schedule for achieving them, Abe appealed his firm determination to the public.

His self-confidence stemmed from an obscure achievement of his economic policy. “We arrived at a situation in which we can say that we have gotten rid of deflation,” told Abe in his administration. However, growth of Japanese GDP has been driven not with Abenomics but international elements, such as hedging from confusion in Europe or unpredictable move of Chinese economy. Consumption is still low after raising sales tax last year. Nevertheless, Abe emphasized that he would raise the tax again two years later “as far as unusual event like Lehman Shock is not happening.”

Those biased attitude in policy is a product of failure in his first term. Abe stepped down as Prime Minister with policy deadlock, which had been ambiguous. He sought close relationship with China, while reinforcing Japan-U.S. alliance. He took on economic growth policy, while encouraging environmental protection. In this second term, he does not hesitate completely dropping one of two options. But, politics cannot be dealt with such a simple dichotomy. Unfortunately, the Japanese people have a leader who does not understand that complexity.