At issue is a choice between two ways to solve economic crisis

Speaking on the ongoing discussion on ways to overcome the current economic crisis on March 29, Japanese Communist Party Chair Shii Kazuo emphasized the need to focus on efforts to help the public increase their personal spending. He criticized the government's emergency economic policy for putting too much emphasis on banks' "early disposal of bad loans."

At a news conference in the Diet building Shii said that the bad debts have increased although the government has taken all possible measures for their clean-up, including the near zero interest rate policy and the funding of 70 trillion yen to help major banks. Such government measures have proven to be useless, he said.

The government intends to promote direct write-offs of bad loans. Shii said such a way will only increase corporate bankruptcies and unemployment, deepen the economic crisis, and create more bad debts.

"The government assisted major banks and general contractor construction companies and reached an impasse. It is clear that such a government economic policy won't help to improve the economy," he added.

The JCP proposes, as the only way to improve the economic situation and get over the economic crisis, to cut the consumption tax rate in order to help the people have more money and increase their household spending.

"The sharp contrast between the two arguments, one for major banks' benefits and the other for improvement of the people's living, will be a major campaign issue in the elections for the Tokyo Metropolitan Assembly and the House of Councilors this summer," said Shii. (end)