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HOME  > Past issues  > 2012 November 28 - December 4  > Gutting welfare program by DPJ, LDP, Komei, Ishin accelerates deflationary recession
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2012 November 28 - December 4 [ECONOMY]

Gutting welfare program by DPJ, LDP, Komei, Ishin accelerates deflationary recession

November 29, 2012
Political parties’ stance toward welfare assistance will be one of key issues in the upcoming general election.

The Democratic, Liberal Democratic, Komei, and Ishin no Kai parties call for a reassessment of the livelihood protection standard while the Japanese Communist Party opposes this on the grounds that it runs counter to efforts to overcome the deflationary recession.

The livelihood protection standard is the minimum standard of living guaranteed under the Constitution. To downgrade the standard will lead to causing a vicious cycle of lowering the levels of people’s livelihoods and quality of life.

A lowered-standard for welfare assistance will possibly lead to a decrease in minimum wages. This will increase the number of “working poor” defined as those whose income is less than the amount provided through welfare benefits in spite of working full-time.

If the standard is lowered, it will push down the taxation threshold. As a result, more and more low-income households will shoulder heavier tax burdens despite unchanged income levels and will be excluded from various public assistance such as lower rates for national health insurance premiums.

The LDP in its election platform declared that it will reduce the amount of welfare benefits by 10%. Furthermore, it plans to revise the welfare assistance program to one which includes a system allowing welfare offices to cut or suspend benefit payments when working-age recipients refuse assistance to find a job.

The Komei Party together with the LDP and the DPJ bulldozed through a bill to cut back welfare services including livelihood protection in the last Diet session.

The ruling DPJ in a budget draft for the FY 2013 proposed to revise the welfare program. Nippon Ishin no Kai also calls for the same.

The JCP strongly expresses its opposition to lowering the welfare assistance standard and proposes to reinstitute additional benefits for elderly in livelihood protection and to improve the welfare system so that those who need the assistance can apply without hindrance.
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