Aso vows to pull Japan out of economic slump

Thursday 25th June, 09:00 PM JST

TOKYO —

Japanese Prime Minister Taro Aso vowed Thursday to do more to pull the world’s second-largest economy out of a recession, as he apparently tried to raise his approval rating before looming elections.

Aso, who has introduced a series of stimulus measures aimed at sparking a turnaround since taking office last September, said that earlier steps have proven effective but “not enough.”

He promised further measures, including support for young people who are out of jobs, as well as educational allowances for families with school children.

The prime minister, who faces a vote by September at the latest, also called for more funding to cover ballooning social security costs. He said the government plans to go ahead with a consumption tax hike in 2012, only if the economy is back on track.

“People are not just worried about the current economic slump. They are concerned about many other things about our society,” Sao said. “We must address their concerns, one at a time.”

The graying of society and the low birth rate is expected to strain government services and pension programs, as well as lead to labor shortages in the near future.

“Before heading into elections, I had to show how we plan to create a society that offers peace of mind,” Aso told a news conference. “We’ll win the elections and do the utmost to achieve the goal.”

Aso refused to give the election schedule but said he planned to call a vote “before long” rather than waiting until the lower house ends its term.

Polls showed support ratings for Aso’s Cabinet drop to the single digits in February, but they have since recovered somewhat to around 20 percent.

Candidates backed by the rival Democratic Party of Japan have won four out of six local elections this year, including the mayoral seat in the city of Chiba, near Tokyo, earlier this month.

The opposition is well-placed to make major gains or even rise to power in the upcoming general elections. Aso’s Liberal Democratic Party has governed Japan for virtually all of the past 50 years.

Since late last year, his government has endorsed several stimulus measures, including the latest $150 billion package that consists of programs to bolster consumer spending and incentives to buy energy-efficient appliances and cars, as well as help for the unemployed and small businesses.

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13 Comments

MeanRingo at 05:17 AM JST - 26th June

First he vows to lose the election by a narrow margin, now he vows to pull Japan out of the slump... what is next?
jacqueshellacque at 05:44 AM JST - 26th June

How will he succeed where his 11 predecessors haven't?
some14some at 06:08 AM JST - 26th June

vows and later disavows this is what Aso has been doing since Sept.08
herefornow at 06:14 AM JST - 26th June

Please, this country is a joke when it comes to government fiscal policy. Just two days ago they announced that it will be at least the early 2020's before they stop adding to the public debt every year, and they are already at 168% of GDP. Ratings agencies are already talking about lowering their rating, which will just make their borrowing costs go up even more. And it is estimated that pensioners will only receive an average of 38% of their pre-retirement wages -- the second lowest of 30 major countries. Years of simply borrowing/spending to pave more roads, rather than bite the bullet and face reality, has caught up with Japan. And the sheep who voted for the LDP for the past 50 years are going to get hit hard.
TumbleDry at 07:22 AM JST - 26th June

we all need a new 30'000 yen transfer each.
tkoind2 at 09:01 AM JST - 26th June

Aso can't pull himself out of a slump, just how does he expect to pull the country out? Anyway, it is pretty likely he'll be looking for a job soon anyway.

The problems are obvious. And there are equally obvious solutions that Aso's government seem blind to.

I have no faith in the existing government to achieve anything but the release of more hot air and policies contrary to the needs and desires of the Japanese people.

But in the end I blame Japanese people for not taking a greater interest in their own political welfare and for voting for the "popular" candidate instead of for ones that may actually represent them.

If you don't take a stronger hand in your political lives, you deserve the poor representation you get from these selfinterested leaders. Stand up and get involved Japan!
Potsu at 09:32 AM JST - 26th June

Can he 'vow' to fix that nasty crooked mouth ?
Simon_Foston at 09:51 AM JST - 26th June

Making education cheaper is one smart idea. But Aso shouldn't just be talking about it. He should do it right away. They should also change the stupid university entrance system so that parents don't have to waste so much money on jukus, and they should stop bailing out unprofitable businesses that have no other means of survival than government hand-outs.
sf2k at 01:16 PM JST - 26th June

why not have a monthly plan? make it 500yen that way citizens can enjoy the fun of paying for their Diet's giant credit card bills. Might work and be over with in 2 years rather than ANOTHER lost decade.

oh yeah recession... well even more important to do it now so that there is ANY cash flow to do anything
dragonczar at 01:45 PM JST - 26th June

How many people would believes his desperated call?Or believes his desperated try to save himself and the LDP?
Kapuna at 03:36 PM JST - 26th June

SPEND....SPEND....SPEND. The only way out! It worked wonders in the U.S. economy.
apecNetworks at 06:17 PM JST - 26th June

The situation reminds me of a game of 5 cards stud poker. PM Aso came into office w/ a crap hand, and the DPJ had at least a pair. They both drew cards, and now, PM Aso has a pair of deuces, but the DPJ is betting like they have a high pair or three of a kind. PM Aso is shoving cash on the table, but the DPJ is matching his bids - time to take a strong draw of straight whiskey to kill the pain.
amerijap at 05:57 AM JST - 27th June

Well, if he were with Bush the first, he would probably whisper into your ears, "READ MY LIPS!"