Abenomics 2.0, the Wall Street Journal is divided on the economic future of Japan after the expected victory of Prime Minister Shinzo Abe. The US financial newspaper implements an original choice compared to the other American and European publications, which focus almost in unison on the positive reaction of the markets to the news, and offers space for a debate between economists and Japanese businessmen which promises of the renewed Japanese strongman.
“While short-term spending policies have weakened the yen and inspired growth – writes the WSJ – it is the third axis of its economic strategy – structural reform – which is seen as the key to ensuring economic expansion in the long term ”.
The expected victory should theoretically strengthen Abe's ability to act, yet the lingering question that troubles the sleep of many economists is whether the prime minister will be able to seize the opportunity to take the necessary steps towards reforms.
There are those who are hopeful, such as the Japanese economist Koya Miyamae quoted in the article: the expert believes that Abe will soon start talking about the "bitter pills" that the nation must swallow. Pills that have the features of a tax reform and tax increases.
However, bitter medicine, the WSJ points out, carries major political risks. According to some observers, Abe will be forced to opt for simpler and less unpopular solutions. Yoshihito Kaneda, president of the technological start-up Fact-Real, belongs to the latter category: "despite all the words spent on the reforms - explains the Japanese entrepreneur - no progress has been made, in particular as regards the issue of guarantees required by banks for loans to small businesses. Abe had shown his intention to help start-ups, but nothing actually happened”.
Start-ups, therefore, but also reform of the labor market - Japan has very restrictive rules for layoffs and this has led to a take-off in the number of irregular workers - and of agriculture, suffering because it is too fragmented and which Abe would like give the real backbone of the sector into the hands of the big fish, while displeasing the small ones.
