Noteworthy aspects of each party’s Campaign Promises in Japan’s Lower House election include: (1) continued measures against high prices through benefits and subsidies, (2) a focus on promoting wage increases, though opposition parties in particular have not taken any measures to improve labor productivity, (3)the tax measure has been focused on raising the minimum taxable amount in light of rising nominal wages, but actually also includes strengthening the taxation of financial income.
There are concerns that a government run by minority ruling parties may have a weak base and be easily destabilized. At the same time, we believe that a cooperative relationship that transcends the boundaries of the ruling and opposition parties will provide an opportunity to engage in fundamental reforms from a medium- to long-term perspective.
Full article: pdf AMOI Opinion Report November
Written by Yuko Iizuka, Economist, Asset Management One Co., Ltd