New Japanese Prime Minister Wants to Install 'New Capitalism'

Sworn in earlier this October, the new prime minister Japanese, Fumio Kishida, took over the country's leadership with a speech focused on rebuilding the economy, which was punished by the pandemic and restrictive measures by Covid-19. In his speech, he promised to encourage the country's growth through policies to reduce the income disparity, in a policy he calls “new capitalism”.

Expectations of improvement in Japan began this early October, with the end of the state of emergency that had been in place in 19 of Japan's 47 provinces for several months. More than 60% of the population is fully immunized and lives days of new normality. In addition to the positive outlook on the sanitary issue, the installation of the office of the 100th prime minister in the history of Japan, Fumio Kishida, has been encouraging the market and the Japanese people.

“The battle against the coronavirus continues. We need to face the coronavirus to bring economic and social activities back to normal and build a new economy, a new lifestyle, a new era,” he declared, after taking over with the immediate intention of revitalizing the economy. In addition to economic growth, this new proposal that the prime minister refers to as the “new capitalism” aims to create policies that reduce the income disparity.

Japan flag
Announcement

To make his idea effective and distribute wealth, he believes that one of the guidelines will be to adjust the income tax rate. The increase in collection of the richest will subsidize actions and policies for the poorest. Consumption tax, which is levied on the sale of products, will not see an increase for “about a decade”. According to Kristi Govella, director of the German Marshall Fund's Asia program in the United States, “Kishida's hope is that economic growth and wealth redistribution will interact in a virtuous cycle. But there are some people who fear that it will prioritize redistribution, and it will end up affecting growth in the process.”

Japan post-pandemic

In Brazil, one of the measures proposed by politicians to revitalize the post-pandemic economy is to regulate casinos integrated into resorts. As in the case of Japan, the reason is to increase state tax collection and direct funds to programs in the base sectors of society. For now, gambling fans can only enjoy the online casinos based abroad, since a regulation for the physical version of these establishments here has not yet been approved. The good thing is that virtual gaming platforms are safe and respected around the world, offering a wide range of table games, slots, and even bingo.

Japan's post-pandemic has been quite different for now, as one of the prime minister's first actions was to announce an early parliamentary election. Despite being scheduled for November, the vote has been brought forward to October 31st. Analysts believe that this decision was made to take advantage of this good moment in the beginning of the government and the optimism caused by the control of the coronavirus in Japan. 

New Japanese Prime Minister Wants to Install 'New Capitalism'
Announcement

Also, as part of his economic proposal, he promised government subsidies to help small and medium businesses. Kishida also said he will open a permanent panel to propose actions to increase the country's economic growth. A possible action will be the “Go To Travel” campaign, with the objective of leveraging domestic tourism. This program already existed between July and December of last year, subsidizing discounts of up to 50% on travelers' expenses - however, with the increase in Covid-19 cases and declarations of states of emergency, he was suspended. 

On September 30th, the last state of emergency came to an end, and that is why the government wants to resume the campaign. According to the new minister of tourism, Tetsuo Saito, “it is important to balance the prevention of contagion and the promotion of tourism”. For now, the border for international tourists is closed, and it is expected to remain that way until 2022.