CDP Says Abenomics Failed to Close Economic Gap in Japan

Politics

Tokyo, Sept. 21 (Jiji Press)--The Constitutional Democratic Party of Japan said in a report released Tuesday that Abenomics did not help close the economic gap in Japan.

In the report that examined former Prime Minister Shinzo Abe's economic policy mix, the country's largest opposition party claimed that Abenomics did not lead to any rectification of disparities or improvement of the poverty situation, saying, "The rich became even richer and those with power just ended up with more power."

The report concluded that Abenomics was the "main reason" why the Japanese economy is still in a state of turmoil.

Abenomics comprises "three arrows"--bold monetary easing, timely fiscal spending and a growth strategy that spurs private-sector investment. Current Prime Minister Yoshihide Suga, who succeeded Abe in September 2020 and is set to leave office soon, took over the reflationary economic policy from his predecessor.

The Abe administration raised the country's consumption tax rate in April 2014 and again in October 2019 "even though it was supposed to take measures to spur consumer demand," the CDP said in the report, adding that the tax hikes "ruined consumption, which makes up over a half of the country's gross domestic product."

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