A Change in the Japanese Government and Possibly the Economy

September 16, 2009 § 5 Comments

On August 30th, 2009, the citizens of Japan (including my parents) have decided to entrust another governmental party, the Democratic Party of Japan (DPJ). Since 1955, nearly half a century long,  the Liberal Democratic Party (LDP) had its grandiose name of power which came to an end, as the demand of the DJP increased in a “country with a sluggish economy and a populace demanding results from his bold promises of change” (Asahi, 2009). In this historically valuable event, Hatoyama, the head of the DJP, and his parliament has won 308 seats out of 480 in the House of Representatives. To this big loss to Taro Aso, the ex-prime minister and chief of the LDP, has stepped down from his position of prime-minister the day after elections.

Now, there is no time for the DPJ to waste being on spree; Hatoyama, the new prime-mister of Japan, has lots to do some cleaning of the country. Amongst many other problems Japan is encountering at the moment, such as the decreasing population, but most of all, everybody is concerned about the economic crisis that blew Japan away. “Domestic consumption and investment need to be closer to the center of economic growth, and that requires major change, including regulatory reform. […] The DPJ plans to do that by increasing household income through monthly child allowances and the elimination of highway tolls, which should have the same effect as tax cuts. It also aims to develop new environmental technologies and create jobs in nursing, health care and agriculture” (TIME, 2009).

This sounds like a great idea, however, the Japanese is worried where the budget of this plan is coming from. “The DPJ must deliver on its promises without increasing the level of deficit financing ‘to demonstrate that they’re fiscally responsible,’ says Gerald Curtis, a Japanese-politics expert and professor at Columbia University” (TIME, 2009). With the challenges ahead, I am worried that the DPJ will not meet the standards of the highly-demanding citizens of Japan, and ending their “seiken”, governmental power, just like the LDP did in the year 2009.

Citations: TIME, Asahi, Newsweek

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§ 5 Responses to A Change in the Japanese Government and Possibly the Economy

  • suvan92 says:

    You researched the topic pretty extensively. I like how you voiced your concerns for the future.

  • Kenny says:

    The new prime-minister has some good ideas but I agree that the budget for the new changes is going to be costly.

  • raybaboon says:

    I think it is natural to have a little bit of doubts since Hatoyama is bringing about many changes. If he can successfully bring about his changes then I believe he can bring about economic growth.

  • moekoibeconomicsyear1 says:

    Yesterday, Hatoyama was officially announced the Prime Minister of Japan, and I think the vast majority of this country is ecstatic. Although Japan is going through an economic crisis as well as the rest of the world, I think Hatoyama is determined try and take Japan out of this situation- though it may not happen for a while.

  • julieeconblog says:

    Similar thing happened in Korea too. The new president has promised the nation to boost up the Korean economy and he seems to be working hard to keep the promise. I agree about your concerns but I hope Hatoyama will keep his words.

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