Think-tanks' trial calculation on increase in unemployment agree with JCP's

Three think-tanks estimate that the government plan to allow major banks to write off their bad loans will mean a one million increase in the number of the unemployed. Their figures, which range from 1.01 million to 1.3 million, largely agree with the Japanese Communist Party's estimate.

Japanese Communist Party Chair Shii Kazuo recently pointed out that the government proposal for such write-offs, apparently to "rid major banks of nonperforming loans," would only help to cause massive unemployment and bankruptcies. This is part of the process of busting weak companies through banks' refusals to grant new loans and for collecting loans on hand, Shii said.

In the tragic scenario, three think-tanks estimate that direct write-offs will force even self-employed people out of jobs, and workers' earnings will decrease by 6.8 trillion yen (55 billion dollars).

On NHK's nationally broadcast political debate on May 13 between ruling and opposition party officials, JCP Secretariat Head Ichida Tadayoshi expressed opposition to the government's write-off scheme entailing such results. He said the task now is for the government to care for the household economy, with determination not to create new jobless people.

The Democratic Party of Japan said the answer should be found not in categorically preventing unemployment, but in encouraging the unemployed to get new jobs. The Komei and the Social Democratic parties said social safety-net programs would meet the needs. (end)