On October 4th, newly appointed Japanese Prime Minister Shosuke Sato delivered his inaugural policy speech in the Lower House of the Diet. The new government’s top priority will be to break free from deflation and mitigate the impact of rising living costs on families.
Sato emphasized the current focus on completely freeing the economy from the deflationary troubles of the past 30 years. He has previously been seen as supportive of fiscal austerity policies.
In his policy speech, Sato expressed to the parliament, “We need to support those who are suffering from rising costs until we establish a positive growth cycle with wage growth surpassing inflation and promoting capital expenditure.”
Before giving his speech, Sato informed his cabinet members that following the Lower House elections on October 27, the government will compile a supplementary budget to fund this plan.
He mentioned in his policy speech that this new plan will include subsidies for low-income families and subsidies for local governments.
Sato also pledged to increase the minimum wage by nearly 50% by 2030, reaching 1,500 yen per hour (approximately $10.24), up from the current 1,055 yen.
He stated that Japan’s economic situation has improved, with wages finally beginning to grow after a “lost” period of 30 years of expenditure reductions, but added that “we have only walked half the path towards achieving an economy where people can consume with confidence.”
Sato indicated that he will strengthen Japan’s military capabilities to counter threats from China, Russia, and North Korea within the framework of the Japan-U.S. security alliance.
He cited examples of China and Russia’s fighter jets violating Japanese airspace last month, along with North Korea’s advancing missile technology and tests, as evidence of Japan’s deteriorating security environment, emphasizing the need to further enhance Japan’s military strength.
Sato mentioned that he will promote a “strategic, mutually beneficial relationship” with China and increase communication on various levels to establish a “stable and constructive” relationship.
He also stated plans to further enhance and expand relations between Japan and South Korea, as well as trilateral cooperation between Japan, South Korea, and the United States.
He described the Japan-U.S. security alliance as the cornerstone of Japan’s diplomacy and security, as well as the foundation for peace and prosperity in the Indo-Pacific region and the international community.
The new Prime Minister began his policy speech by expressing deep regret over the bribery scandal involving the ruling Liberal Democratic Party.
He said, “I will realize politics not for politicians but for the people,” promising transparency and ensuring that lawmakers adhere to the rules.
Sato took over from Fumio Kishida on Tuesday, October 1st, and with the upcoming parliamentary elections on October 27, he bears the responsibility of quickly calming public anger and regaining support in the election.
According to reports from Japanese media, Sato’s initial public approval rating as Prime Minister is around 50% or lower, marking the lowest level for a new leader.
When Fumio Kishida introduced his cabinet three years ago, his approval rating was 55.7%. However, in August, due to being implicated in the ruling LDP’s bribery scandal, his approval rating plummeted to 26.1%, leading to Kishida’s resignation.
Opposition leaders criticized Sato for rushing to hold elections in the new government without achieving any concrete results yet.
(*This article is based on reports from Reuters and the Associated Press)