Japan goes to an election accompanied by a very confused economic debate
These notes will serve as part of a briefing document that I will send off to some interested parties in Japan. Japan is about to go to the poll for a snap national election on February 8. The recently installed Prime Minister, Ms Takaichi is betting that her recent solid showing in the polls will allow her to capture more seats in the Diet and reduce or even eliminate her dependency on the ‘uncomfortable’ coalition partner, the Japan Innovation Party (JIP) aka Ishin. That coalition was formed after Mr Ishiba, the previous PM, also bet on a snap election result, which saw the ruling Liberal Democratic Party (LDP) go backwards (losing 68 seats) and the coalition partner Komeito also lose seats. Together the ruling coalition lost its majority in the National Diet (for the first time since 2009) and Shigeru Ishiba’s popularity began to evaporate. The background to that loss was a major political funding scandal among the Cabinet ministers and the election result signalled that the Japanese people had seemingly had enough of the corruption at the top. Ms Takaichi took over after Mr Ishiba could no longer sustain his position as PM. The old coalition between the LDP and Komeito fell apart because the Buddhist Komeito could no longer stomach the new PMs imperialist ideology nor her unwillingness to deal with he insidious corruption in her party. This forced Ms Takaichi to forge a new coalition – hence the rather unlikely pairing with Ishin, which is a right wing populist party espousing neoliberal economic policies. The government is proposing a major fiscal expansion but the debate during the campaign that is now underway is very confused. The confusion arises because all the main players keep wheeling out mainstream economic arguments that tie them up into nonsensical policy proposals.