Will government carry on its irrational economic policy? Akahata editorial, September 9, 2001 (excerpts)

Japan's gross domestic product (GDP) for the April-June quarter slowed to a minus growth. It showed an annual minus 3.2 percent growth rate, which is equivalent to an annual minus 10.3 percent after adjustment for price fluctuations.

This is due to the contraction of the already declining domestic consumption and exports going down following the slowdown of the U.S. economy.

A survey on the household economy, which accounts for 60 percent of the national economy, showed a minus growth for the last two quarters. Reflecting the falling demand at home and abroad, investment in plant and equipment dropped by 10 percent.

The Koizumi Cabinet, however, is completely indifferent to this situation. Takenaka Heizo, state minister in charge of economic and fiscal policy, said that economic recovery is inadequate because the economy was not so bad. Prime Minister Koizumi Jun'ichiro said that the 5 percent unemployment rate is proof that the "structural reform" is progressing.

Under this government, bankruptcies and closure of small- and medium-sized businesses have rapidly increased, the number of unemployed has increased and the period of unemployment has become longer, and the household economy has become more stringent. Technological skills are not adequately carried over, and young people cannot get jobs.

The urgent task for the government is to directly support the household economy, and the best way to do it is to cut the consumption tax rate to 3 percent, which is equivalent to 5 trillion yen more income emerging for the people.

Also important for the government is to stop its plan to adversely revise the social services system, establish a reliable social services system for the people, and establish rules for job security against corporate restructuring. (end)