Kishida: a new type of capitalism is required to eliminate disparities

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Former foreign minister Fumio Kishida, who aspires to become the governing party’s next leader and prime minister, believes Japan should strive for a new type of capitalism to eliminate economic disparities that have grown as a result of the coronavirus outbreak.
Mr Kishida was the first member of the Liberal Democratic Party (LDP) to declare his candidacy in the Sept 29 leadership election after Prime Minister Yoshihide Suga announced his resignation last Friday (Sept 3). The victor of the election will very certainly become Japan’s next Prime Minister. Former interior minister Sanae Takaichi joined Mr Kishida in the race on Wednesday (Sept 8) and unveiled a conservative programme, while popular coronavirus vaccine Minister Taro Kono met with party heavyweights as he assessed his prospects. If elected, Ms Takaichi, 60, would be Japan’s first female leader.
Mr Kishida claimed that deregulation during the reform era in the early 2000s widened the gap between the haves and have-nots and that former Prime Minister Shinzo Abe’s “Abenomics,” which aimed to fix the country’s shattered finances by achieving high growth and increasing tax revenues, failed to deliver benefits to the general public.
Mr Kishida stated during a presentation of his economic ideas in Tokyo on Wednesday that “without distribution of wealth, there would be no rise in consumption and demand… there will be no further growth if distribution of wealth is lost.”
I intend to establish new Japan-style capitalism. Ending deflation is the most difficult task in macroeconomic policy. He added, “I’ll continue to a three-pronged plan of aggressive monetary policy, flexible fiscal expenditure, and growth strategy.”
“There is no doubt that Abenomics has resulted in significant growth, but trickle-down has yet to occur in terms of wealth distribution.”
Mr Kishida reiterated his request for a “tens of billions of yen” economic stimulus programme to tackle the coronavirus outbreak. He stated that fiscal spending would be used to provide economic stability while without abandoning budgetary reduction.

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