Crushing the weak is no 'reform': Akahata editorial on April 29

Akahata's editorial of April 29 criticized the Koizumi cabinet for intending to crush the weak to help the strong under cover of "reform."

Whenever Prime Minister Koizumi Jun'ichiro refers to his main economic policies, he always uses the words "structural reform" as if they were almighty. He insists that there would be no economic recovery without structural reform. What does he specifically mean by these words? His speeches and the cabinet lineup clearly indicate that his policy is one of supporting major banks, general contractor construction companies, and other large corporations, while making the people shoulder a greater burden.

Major banks' mouthpiece

During the Liberal Democratic Party presidential election campaign, Koizumi called for the "emergency economic policy package" to be immediately carried out, including the write-offs of bad loans and setting up a stock-buying body in the direct interest of major banks. Privatizing postal administration and greater social services costs for less benefits are his other proposals.

It is common understanding between the government and the ruling coalition parties that the immediate write-offs of bad loans will result in a drastic increase in bankruptcies and unemployment. Banks' losses from bad loans will be covered by public money, and large construction companies can rehabilitate themselves by write-offs of bad loans and tax reductions in return for corporate restructuring. This is the opposite of what politics should do.

Prime Minister Koizumi's appointment of Takenaka Heizo, professor at Keio University, to be state minister in charge of economic, fiscal, and IT policy, is a symbol of the Koizumi Cabinet's posture, being generous to major banks and cold to ordinary people.

Takenaka's theory is that banks' bad loans need to be "regulated at once," (Ronso Toyo Keizai-Debate Oriental Economist, May issue), and support be given for privatizing postal administration and corporate restructuring. He said the best tax system is a heavy poll tax in which individuals are universally taxed (Voice, May issue).

The cabinet has taken this person as minister in charge of economic and fiscal policy because it is determined to make the strong stronger and crush the weak in the name of "structural reform," which is a blind trust in the principle of market forces as the almighty.

The people should also be alarmed about Takenaka's trial calculation of 14 percent as the desirable consumption tax rate when he was an Economic Strategy Council member under the Obuchi Cabinet.

P.M. Koizumi says there shall be "No up or down" in the consumption tax rate. This is only because the bad economic situation doesn't provide a good timing for considering a raise in the consumption tax rate.

With the new cabinet's tax policy in the name of "structural reform," the consumption tax rate increase, a relatively heavier burden on low income earners, is combined with tax reduction in corporate taxes and taxes for high income earners.

The proposal for "specific study" of privatizing postal administration as part of the agreement on government with the Komei Party is another indication of the cabinet policy which supports major banks and gives a cold shoulder to ordinary people.

Privatizing postal savings and the post office life insurance has been the demand of major banks and insurance companies for many years. The people have lost their trust in the banking industry due to its sick operations caused by a series of scandals, reckless loans, and tax money injection. The banking industry calculates that they can take over the market of privatized postal savings once their state protection is gone.

The cabinet has not a grain of consideration for the people's livelihood, as it calls for privatizing the financial services to the people's benefit and for threatening the nation's postal services.

The French newspaper Le Monde (Apr. 25) is correct when it described Prime Minister Koizumi as a politician who sides with bankers.

Crisis will go deeper

The Koizumi Cabinet will support major banks and large construction companies, make the people experience more bankruptcies and higher unemployment rates, and will be waiting for a chance to increase the consumption tax rate. This is the cabinet which helps the strong and crushes the weak.

This type of economic policy in the past has damaged household consumption which accounts for 60 percent of the national economy, and has made the economic recession more serious than ever.

The Koizumi Cabinet has no idea of changing the framework of the failed economic policy of the coalition government of the Liberal Democratic Party and the Komei Party. It will dash forward on the "laws of the jungle" track in the name of "structural reform." Such a cabinet is neither qualified nor capable to steer the nation out of its economic crisis. (end)