Kishida vows economic redistribution

TOKYO: Japan’s new Prime Minister Fumio Kishida yesterday vowed to implement a “new capitalism” to put the world’s third-largest economy on a growth track and redistribute the fruits of that success to build up a stronger middle class in his first policy speech.

Addressing the lower house of parliament, he also promised to bolster the government’s response to Covid-19 while laying out plans for a sweeping review of security strategy to promote a free and open Indo-Pacific in the face of an increasingly assertive China.

“Only when we properly distribute the fruits of growth will we be able to realize more growth,” Mr Kishida said, arguing that neoliberal policies had created a “deep rift between the haves and the have-nots.”

Signaling a continuation of “Abenomics”, pursued by former prime ministers Shinzo Abe and Yoshihide Suga, Kishida vowed to ward off deflation through drastic monetary easing and fiscal spending.

But his comments on redistribution appeared aimed at addressing criticisms that Mr Abe’s signature policy mix had boosted corporate earnings and stock prices but failed to trickle down to the middle class.

On Covid-19, he warned against becoming complacent following the lifting of the state of emergency and vaccination progress, pledging to ready booster shots and medical treatments as well as legislation to make it easier for the government to impose restrictions on movement and secure medical resources when future waves of infections happen.

“The key to crisis management is to be always prepared for the worst-case scenario,” Kishida said, adding that cash handouts will become available for businesses hit hard by the pandemic, as well as people in need such as those without regular employment or who are raising children.