What Japan needs now

After the ordinary session of the Diet for 2009 convened Monday, deliberations in the national legislature went into full swing. As the Japanese economy is battered by the global economic slowdown triggered by the financial crisis that originated in the United States, political parties must give priority to implementing policy measures to stabilize employment and stimulate the economy.

It is also important that the parties clarify their visions for a future Japan and the policy tools needed to realize them, since the current term for the Lower House members expires in September and general elections will be held anyhow. The most important items on the Diet floor are a second supplementary budget for fiscal 2008 and the fiscal 2009 budget. The supplementary budget includes ¥2 trillion in cash benefits for all households.

Opposition forces led by the Democratic Party of Japan want the ¥2 trillion measure scrapped. They view it as a wasteful use of tax money and argue that the money could be used for more meaningful purposes like helping unemployed people and small enterprises suffering from the economic downturn, and improving medical and nursing care services.

Prime Minister Taro Aso says the money is an emergency relief measure for households and that it will have the effect of increasing household consumption. He says people now are waiting for the cash benefits. But he should consider the possibility that the contention between the ruling and opposition blocs over the ¥2 trillion will delay the enactment of the supplementary budget to mid-March or later. The supplementary budget includes measures for creating employment and financially helping small and medium-size enterprises.

To ensure quick passage of the supplementary budget, the government and ruling bloc should agree to remove the ¥2 trillion measure. The opposition bloc, on its part, should cooperate in quickly passing the supplementary budget if the ¥2 trillion issue is handled separately. Both the ruling and opposition parties should consider what the nation needs most as it faces an economic crisis.