I pointed out in the previous article that Japan has an incomprehensible employment practice of hiring only new graduates. Those with no work experience are not hired. Discrimination against those without work history continues. This is not a story of the distant past. The “ice age” generation is passing the marriageable age without being able to marry because they cannot afford to. It is truly a silent genocide. The population will continue to decline. Corporate executives and human resource managers do not realize that they are strangling themselves with their own hands. They will soon learn that tomorrow is their own fault. No matter what the government's policy is, the problem will not be solved until discrimination against the ice age generation is eliminated. There are many people who make fun of our generation, calling us NEETs, parasite singles, and shut-ins. Promoting discrimination through variety shows and dramas will not turn a blind eye to the increase in suicide and crime caused by poverty. Will they continue their ridicule even in an age when parents kill their children and children kill their parents? Those who lay blue sheets on riversides and parks, those who spend all day in the concourse of the station, those who have become their last habitat in internet cafes, do you keep pretending to see?
TBS's “Hayashi-sensei's Surprising First Listen!” is terrible. Japanese mass media created new class of discrimination and are making fun of it via variety show and even drama. They are not willing to contribute to the solution of things. By nature, they should be the eyes, ears, and mouth of the people. They blame individuals for being the victims of economic policies. That program is a microcosm of Japanese society.
We have the right to petition, the right to vote, and the right to be elected. Like the Ice Age Generation Union, you have to be politically active. Few people like Socrates drank poison by saying, “Obey and do not do otherwise”. In every age and every place, evil governments have been overthrown by the people. Since Japan is a democracy, the only way to change the situation is through the power of the ice age generation. If you are laughed at and mocked, or you find the ridicule of others frustrating, you should act and not obey in silence.
In order to keep the unemployed from increasing, the Japanese government has spent taxpayer money to prevent bankruptcy. But if big companies are favored, monopolies and oligopolies will be maintained and new companies will not grow. New products and services will be less likely to emerge, and consumption will be sluggish due to a declining population and personal income, resulting in price competition and diminishing returns. Japan has been in a deflationary state for a long time. It is best not to prevent bankruptcy in order to return to the original normal economic state where innovation is active and returns are increasing. That should not be an exception, even for large banks and brokerage firms.
Even if the Bank of Japan and the GPIF use mutual funds to support stock prices, only companies listed on the stock market will benefit. The funds will not go to the businesses that are really needed and are the leaders of new industries. Instead, it will exacerbate monopolies and oligopolies. With low interest rates, megabanks are only thinking about selling mutual funds to their customers. Their goal is to earn commissions, and they don't care about their customers' asset management. The main purpose of banks should be to develop industries. If they can't play that role, it would be better for them to favor and nurture crowd funding and venture capital, which would help create new industries and the jobs that come with them.
Consumption is an important factor in GDP, but any Japanese who suffered from the long recession after the collapse of the bubble economy has already experienced that the increase in consumption due to tax cuts is only temporary. Many economists have pointed out that trickle-down is useless. There is also a concern that capital investment will temporarily increase in anticipation of the future, but will also lead to overcapacity.
As Mr. Robert Reich points out, there are several important aspects of the external diseconomies of labor, especially measures to promote middle class employment.
Business start-up support
Stable, permanent employment.
If we are to survive the mass extinction of companies that followed the COVID-19 pandemic, it is essential to support startups to increase employment. The cumbersome registration procedures and hefty company formation fees are ridiculous. Just do what New Zealand and Finland did. The third will be a difficult target if there are corporate bankruptcies and increased competition, and in order to solve 1 and 2, the next chapter will look at economic policy in the Edo period.