Japanese PM Candidate Urges New Form of Capitalism

A key contender for Japan’s prime minister seat proposed on Sep. 8 a new “Japan-style capitalism” that will narrow income disparities caused by the pandemic.

Fumio Kishida, former foreign minister of Japan, said that while deregulation and structural reforms in the early 2000s created strong economic growth, they also “created a gap between the rich and the poor.”

Kishida also pointed out that former prime minister Shinzo Abe’s “Abenomics” strategy lacked trickle-down benefits.

Abenomics” sought to lift Japan out of decades of stagnation by increasing money supply to generate inflation and stimulating consumption through government spending.

“We have to turn around the economy in this situation, and if we just do the same thing, the gaps will only grow and there will be no positive cycle,” Kishida said.

In a bid to “properly distribute” Japan’s growth, Kishida pledged to provide child-raising support to middle class families.

Kishida called for several “trillions of yen” in economic stimulus to combat the COVID-19 pandemic, along with a university fund to support science and promote renewable energy.

Kishida announced his intention to run for the ruling Liberal Democratic Party’s presidential election on Aug. 26.

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