Japan’s Wealth Gap In‑Depth: The LDP’s Fight for the Next PM
Picture Tokyo’s skyline at night – neon all glimmer, but inside cabinets the debate is a different story. The leadership race of the Liberal Democratic Party (LDP) isn’t just a pick‑up menu of politicians; it’s a showdown over how to address Japan’s ever‑widening wealth gap, a problem that grew under Shinzo Abe’s Abenomics plans.
Abenomics: A Mixed Blessing
- Strong corporate profits and soaring share prices.
- Households left looking increasingly like the “why are we not seeing the benefit” crowd.
- Five‑year government survey reveals a hot‑headed trend: only the top 10 % improved.
The survey, published in February, spots a 3.5 % drop in average household wealth from 2014 to 2019. Meanwhile, the stock market did a little dance, but most people didn’t hop on the train.
Front‑Runners: ‘Let’s Get the Cash Back In the Wallets’
Meet the LDP’s two main contenders:
Taro Kono – “Tax Cuts for Good Bread.”
Kono’s got a straightforward plan: cut corporate tax for firms that raise wages. He’s convinced it’s a win‑win – cheaper workplaces, happier workers.
Fumio Kishida – “Middle Class, Middle Class.”
Kishida wants to make the middle class bigger by handing out targeted payouts to low‑income families. He’s all about that “growth + distribution” cycle, quoting “A virtual cycle of growth.”
Both leaders admit they are still writing the playbook – the country’s policy toolkit was “tened down” after years of stimulus.
Other Contenders & The Power Play
- Sanae Takaichi, 60 – former internal affairs minister.
- Seiko Noda, 61 – former gender equality minister.
- Four‑way race – winner gets automatic PM mantle because LDP holds a parliamentary majority.
Japan is set to vote on Oct 4 to choose the new premier, following Yoshihide Suga’s resignation last year.
Experts Speak
Shigeto Nagai, Oxford Economics: “Abenomics didn’t lift household wealth, just the uber‑wealthy.”
Currency Quake Bank of Japan (BoJ) Governor Haruhiko Kuroda defenders: he blamed the pandemic for weak consumer spending, not slow wage growth. He claimed, “Japanese firms held jobs, but wages haven’t jumped like elsewhere.” He insisted that once the pandemic wanes, consumption will pick up.
Bottom Line
When the next LDP leader steps onto the stage, they must acknowledge that trickle‑down policy alone won’t solve Japan’s divide. The focus will be on giving real funds back to home‑owners and making the economy’s boom feel a little more like an all‑inclusive celebration. The stakes? Federal power, household wallets, and a nation that’s craving fresh change.
