  It's time to shift policy to narrow income gapsAkahata editorial (excerpt) The Cabinet Office's Economic and Social Research Institute published a report revealing that the income gaps in Japan, especially among young people, have been rapidly widening since 1997 due to an increase in the number of non-regular workers. In the late 1990's, scholars and journalists warned of inequality in wages among Japanese people, but the government adhered to a "myth of equitable wages," refusing to admit to the widening income gaps. The government argued that income disparities are increasing only in appearance simply because of an aging society, and that income disparities among the same generation are not expanding. The Cabinet Office report this time showed that differences in income already began to increase in 1997 not only among elderly people but also young people. A Ministry of Internal Affairs and Communications survey also showed that the rate of non-regular workers out of the workforce hit a record high of 32.3 percent between January and March this year. No doubt that income disparities in Japan are widening more than ever. The need now is to shift the helm to a halt to these inequalities from "structural reform" that only helps widen the gaps. However, the government and ruling parties are eager to promote further deregulations that trigger instabilities in employment and working conditions and force people to shoulder extra burdens in social security services. Since 1987, when the government drastically downgraded income redistribution programs, it has treated tax breaks for large corporations and high-income earners as "sanctuaries." The planned reduction and abolition of deductions from taxable income will hit lower income earners hardest. In addition, the government and the ruling parties are seeking to abolish the fixed-rate tax deduction system and increase the consumption tax rate that will adversely affect the living conditions of lower and medium income groups. Inequalities in income are becoming so serious in Japan that it will be reckless to destroy the function of income redistribution. -- Akahata, June 6, 2005 |