September 14, 2022
Akahata editorial (excerpts)
The government led by Prime Minister Kishida Fumio recently decided on additional measures aimed at dealing with the ongoing price surge. These measures, however, fall far short of helping the general public survive the rising living costs.
Although the government’s latest data recognizes that the weak yen has contributed to more than half of the higher prices, the Kishida administration showed no intention to shift away from the monetary policy of a “different dimension” which triggered the yen’s depreciation, leaving rising prices as they are.
The additional measures include a cash handout program which will provide 50,000 yen each to low-income households exempt from residential taxes. However, the scope of the persons eligible for the program is very limited. The program should cover all the people in need, including those who suffer income losses due to the COVID-19 pandemic. In this regard, the Japanese Communist Party proposes that a cash handout of 100,000 yen be offered to these people.
In order to reduce financial hardships due to price increases, the most effective way is to lower the consumption tax rate. Already, 96 countries and regions around the globe have reduced the rate of the value-added tax (the consumption tax in Japan) as a measure to support people’s livelihoods under the pandemic situation.
The Kishida government in April carried out cuts in public pension benefits and plans to raise out-of-pocket medical expenses for the elderly aged 75 and over to 20% from the current 10% in October. The government should cancel this plan which will impose heavier burdens on elderly people amid the skyrocketing prices.
The need now is for the Kishida administration to convene an extraordinary Diet session and decide on measures that will help the general public survive the cost of living crisis.
The government led by Prime Minister Kishida Fumio recently decided on additional measures aimed at dealing with the ongoing price surge. These measures, however, fall far short of helping the general public survive the rising living costs.
Although the government’s latest data recognizes that the weak yen has contributed to more than half of the higher prices, the Kishida administration showed no intention to shift away from the monetary policy of a “different dimension” which triggered the yen’s depreciation, leaving rising prices as they are.
The additional measures include a cash handout program which will provide 50,000 yen each to low-income households exempt from residential taxes. However, the scope of the persons eligible for the program is very limited. The program should cover all the people in need, including those who suffer income losses due to the COVID-19 pandemic. In this regard, the Japanese Communist Party proposes that a cash handout of 100,000 yen be offered to these people.
In order to reduce financial hardships due to price increases, the most effective way is to lower the consumption tax rate. Already, 96 countries and regions around the globe have reduced the rate of the value-added tax (the consumption tax in Japan) as a measure to support people’s livelihoods under the pandemic situation.
The Kishida government in April carried out cuts in public pension benefits and plans to raise out-of-pocket medical expenses for the elderly aged 75 and over to 20% from the current 10% in October. The government should cancel this plan which will impose heavier burdens on elderly people amid the skyrocketing prices.
The need now is for the Kishida administration to convene an extraordinary Diet session and decide on measures that will help the general public survive the cost of living crisis.
