March 21 & 23, 2014

The percentage of people who don’t feel any economic recovery since the Abe government was inaugurated in December 2012 reached 75.3% (Jiji Press) and 77% (Yomiuri Shimbun). The proportion of those who think that the consumption tax hike starting in April will constitute an additional burden on family budgets is 79% (Asahi Shimbun). And 55% of respondents said that they will have to tighten their purse strings from April (Yomiuri Shimbun). These are the results of recent public opinion polls.

An overwhelming majority of the general public will be forced to further reduce household spending after the sales tax rate is raised in April from the current 5% to 8% as they cannot realize any “benefits” from so-called “Abenomics”, the government’s economic stimulus policies. If consumer spending is depressed amid declining income and the worsening employment situation, it will further aggravate both the economy and national finance.

The ruling coalition of the Liberal Democratic and Komei parties on March 20 rammed the fiscal 2014 budget starting in April through the Upper House over the objections of opposition parties, including the Japanese Communist Party. This is the third earliest enactment of a budget since the end of World War II. It came about as the governing parties, which hold a majority in both the Upper and Lower Houses, steamrollered the budget bill through with a mind to put to use the revenues from the planned consumption tax increase.

In the background of such a “speedy approval” of the budget lies the fact that some opposition parties have courted the government and supported it under the guise of “responsible opposition parties”.

The largest opposition party, the Democratic Party of Japan, voted against the draft budget at the plenary session of the Upper House. However, the DPJ had actually agreed with the ruling LDP on putting the draft to a vote on March 20 even before the House’s meeting of directors of political parties officially set a date for the vote.

Your Party, the second largest opposition party in the Upper House, presented to the administration its economic policy dubbed “Nabenomics” after party leader Watanabe Yoshimi, and Prime Minister Abe praised the proposal as being in line with Abenomics.

The Asahi Shimbun criticized these parties’ moves in its editorial on March 22, saying that certain opposition parties are trying to get on the bandwagon stealthily while ruling parties neglect engaging in Diet discussions by using their force of numbers.

Past related article:
> ‘Complementary opposition parties’ court government favor [February 7, 2014]