Japan's Digital Transformation Minister and member of the Liberal Democratic Party (LDP), Taro Kono, has called for austerity amid high inflation. The politician plans to close 'inefficient' businesses, sparking controversy.
Taro Kono’s Call for Reforms
Digital Transformation Minister and political “maverick” Taro Kono has called for the closure of unprofitable Japanese businesses in an interview aired live on Sunday, Sept. 1 (JST) with ABEMA News Show.
Arguments for Closing Inefficient Companies
Kono argued that due to Japan’s inflationary problems, fiscal discipline is critical, and “ineffective projects currently being carried out under the budget” must be discontinued. It is unclear exactly what Kono’s plans could entail — whether the state would merely remove financial support, or take more drastic action to force small businesses to close. He emphasized the need to provide new skills for workers while ensuring their livelihood with a safety net. Quote: "This is an important reform for Japan, which is said to have low productivity, but it’s a bloody reform," political journalist Kazuhiro Aoyama remarked.
Reaction to Kono’s Statement
Kono’s interview sparked backlash from Japanese social media users who perceived his call as an attempt at 'centralized control.' One X user commented: "Ending companies that are not improving their efficiency’ is the role of private companies competing with each other, not politics. If we follow this logic, then Diet members who have kept the Japanese economy inefficient for 30 years should be ended. This person’s confusion between macro and micro is so severe that he is not fit to be prime minister."
Taro Kono continues to advocate for significant economic reforms in Japan despite criticism and opposition. The success of these proposals remains to be seen.
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