Bait and switch
Posted by ampontan on Monday, October 19, 2009
NOW THAT the Japanese electorate has unwittingly jumped from the frying pan into the fire by selecting the country’s Democratic Party to lead a government, people are starting to get scorched. Everyone knew before the election that the DPJ’s principal talents were obstructionism and harangues more suited for postgraduate seminars and smoky union halls than a legislature, but people held their noses and voted for them anyway. Entropy had finally had its way with the Liberal Democratic Party, and that party’s mudboat wing stepped up to the challenge by committing the de facto equivalent of hara-kiri.
By trying to implement a platform whose individual provisions never polled all that well and won’t work well at all, the new government is making manifest its shallowness, petit authoritarianism, and disregard of anything outside its self-interest.
From the Mainichi Shimbun
The vernacular edition of the newspaper carried a story that described a chilly conversation last week between Sengoku Yoshito, the Minister of State for Administrative Reform, and Nagatsuma Akira, the Minister of Health, Labor and Welfare.
Mr. Sengoku initiated the conversation about the JPY 12.4 billion-program for one-time payments of JPY 36,000 to parents of children aged 3-5. That program was started by the Aso Administration at the behest of its New Komeito coalition partners. The payments were supposed to have been made by the end of the year.
The Mainichi quoted Mr. Sengoku as telling Mr. Nagatsuma:
“The special child support allowance was begun by New Komeito, so it has to be cut”.
He also said this was a “Cabinet decision”, though why Mr. Nagatsuma—a Cabinet member—was not present when the decision was made was not explained.
The program was a likely candidate for the axe anyway, because it was adopted to please the former government’s junior coalition partner and to deflect attention from the DPJ’s more extensive child subsidy proposal before the election. That alone doesn’t explain the antagonism, however.
What does? Despite sharing a similar political outlook, the DPJ has shown no interest in bringing New Komeito into their ruling coalition. Indeed, they’ve gone out of their way to harass them in the Diet. They’d rather try to reconcile the irreconcilable paleo-old guard of the PNP and the viperous left of the Social Democrats and govern as if they were in a four-legged race.
That’s because the DPJ’s Shadow Shogun, Ozawa Ichiro, has detested New Komeito for years. If the Mainichi report that this was a Cabinet decision is true, now we know who’s making decisions for the Cabinet.
For an insight into the inscrutability of Japanese politics, by the way, Mr. Sengoku is considered to be an Ozawa opponent within the party.
In the end, the Government canceled the program and held a press conference to “apologize to the people and local governments.”
No one was mollified.
From the Asahi Shimbun
The Aichi Prefecture Mayors’ Conference was held last week in Nagoya, their first meeting since the new government took office. All but one of the prefecture’s 35 mayors attended. The mayors passed a resolution asking the Government to assume full financial liability for the DPJ’s own child allowance proposal, as per their political platform, instead of sticking local governments and the private sector with part of the bill. Some participants complained that the DPJ’s ineptitude is causing turmoil in local government.
Said Inuyama Mayor Tanaka Yukinori (affiliated with the opposition LDP):
“The ministers just jump the gun with these statements, without specifying what is wasteful and what was wrong about the previous expenditures.”
Here’s Toyota Mayor Suzuki Kohei on the work his his city already performed for the Aso Administration policy:
“Our efforts wound up being a waste of time and money. (Some municipalities had to hire temporary employees.) When (the Government) says, ‘We’re a new administration,’ some local governments think that’s an insufficient reason or explanation.”
The sentiments were echoed by Aichi Gov. Kanda Masaaki, a guest at the meeting:
“There is uneasiness and turmoil in the communities. I’m going to do everything I can to hold local conferences to convey our concerns to the government.”
From the Nihonkai Shimbun
Tottori Gov. Hirai Shinji was even more scathing. At a press conference on the 15th, he said:
“The people ordered kabayaki (grilled eel), but they were served up something already eaten alive by a viper.”
In reference to the new Government’s inability to deal with the Finance Ministry bureaucrats, Mr. Hirai noted:
“Whenever the Finance Ministry says anything, they just swallow it whole and keep putting it on the tab of local government. Nothing at all has changed. In fact, it’s gotten worse.”
It might be that local governments could be a more effective check than the nominal opposition party, the LDP, which seems to be missing in action at the national level.
Then again, the Hatoyama Administration isn’t in the mood to listen, regardless of the number of conferences Aichi Gov. Kanda holds.
On the 18th, Deputy Finance Minister Noda Yoshihiko reiterated that the Government is still considering having local governments and businesses cough up some of the money for their child allowance scheme.
Bait-and-switch, inflexibility, and policies that smack of Mussolini-style corporative fascism are no way to run a government, son.
Let’s reduce reliance on the bureaucracy by expanding it!
Back to Sengoku Yoshito, the Minister for Administrative Reform, who also appeared on TV on the 18th touting his latest reform idea. He wants to reorganize Mr. Nagatsuma’s MHLW:
“Its jurisdiction is so broad in scope that the problems arising there every day come up nowhere else.”
The Aso Administration was also interested in reorganizing the ministry last May, but, as with the Aso Administration itself, nothing came of it.
His proposal would seem to be hypocritical for a party that co-opted local reformers by promising to disassociate from the bureaucracy, and then changed its tune to disassociating from a reliance on the bureaucracy once they took office.
Instead, he suggests creating three new Cabinet ministries, each with a name that only the left could dream up:
- The Ministry of Children and Families
- The Ministry of Education and Employment
- The Ministry of Social Insurance
The LDP had the capital idea of privatizing the Social Insurance Agency, but the agency itself torpedoed that plan by leaking the news of the colossal, decade-long foul-up of pension records. (All the more reason to privatize, is it not?) Then-DPJ-head Ozawa Ichiro said it should be merged with the National Tax Agency.
But now the DPJ is the party in power. Now they want to make it into a ministry of its own.
The idea behind coupling education with employment was that the Education Ministry, which also includes culture, sports, science, technology, and God knows what-all, was another candidate for reorganization. Mr. Sengoku did not explain why there was a need to end one Rube Goldberg bureaucracy just to create another. Nor was any justification provided for the existence of full-fledged Cabinet ministries focusing on labor, children, or families; it was as if no justification were needed.
In other words, Mr. Sengoku’s idea of governmental reform is to create three useless ministries where one existed and none are needed. Yes, let’s not rely on bureaucrats any more. As if that weren’t enough, he also said he was going to think of other ways to efficiently reorganize the central government.
Well, what sort of administrative reform can one expect from a former labor lawyer who was first elected to the Diet as a member of the Socialist Party? Did anyone really think he was going to consider central government downsizing?
Here’s another one on the inscrutability of Japanese politics: Mr. Sengoku is affiliated with the DPJ’s Maehara-Edano group/faction, which is considered to be on the Right within the party.
People outside of Japan are starting to draw conclusions about the new government, particularly those in financial circles.
Phill Tomlinson thinks stagflation will continue:
Many Keynesian economists are still baffled by Japan. Over the years, policy after policy has been proposed by their school of thought, all of which involve some form of government action, but time and time again they all seem to fail. The classic Keynesian rebuttal whenever these policies fail is “Well, the authorities didn’t do enough”. Just like they apparently didn’t do enough during the Great Depression.
The reason why they never recovered to their previous highs was exactly what the Government did, they took over and tried the command economy approach. Roads to nowhere, propping up banks that were insolvent, not allowing private enterprise to take over the means of production. Rather than money going into the private sector, Japanese savings that were accrued during their economic miracle were funneled into Government bonds, wasteful Government consumption. It was quite simply a classic stagflation that is still ongoing.
That was published on the same day it was reported the Government would try to prop up debt-ridden Japan Airlines by putting its ownership in the hands of a quasi-public corporation without having it go through bankruptcy.
Meet the new boss.
Even worse than the old boss.