Japanese Democrats lose big in upper house elections

Economy permently stuck in neutral

by Clifford F. Thies

The ruling, center-left Japanese Democratic Party lost big in the just concluded elections of half of the upper house of their country's national parliament. Even with its large number of holdovers, the Democrats and their junior coalition partner have lost their majority in that house. As to whether they will be able to bring in new coalition partners so as to regain a majority or with merely a plurality is unclear at this time. The Liberal Democrats and the life-minded New Komieto and Your parties (like that name), picked up seats, but not enough to constitute a majority. There are also a handful of independents and the Social Democrats and Communists.

This defeat of the Japanese Democratic Party in the upper house elections, will make advancing their political agenda more difficult (if the party could be said to have an agenda), even though they continue to dominate in the more powerful lower house. The Democrats surged into majority status after the country had grown weary of the center-right Liberal Democrats continuous deficit-spending, cronyism, and creeping tax increases, especially after the departure of the personally popular and reform-minded Junichiro Koizumi. The problem for the Democrats is that what they stand for is not clear other than being the alternative major party to the Liberal Democrats.

At this time, there is widespread disagreement about basic policy matters such as raising the sales tax, lowering the corporate tax, cutting the deficit and re-nationalizing the post office (and its ginormous postal savings department). The economy of the country seems to be in a deep funk, burdened by the largest national debt by far of any advanced economy, a very complicated tax structure featuring high marginal tax rates, as well as geopolitical uncertainties. With its rapid turnover of prime minister during the past several years, the country looks ungovernable, the way ours did during Jimmy Carter's failed presidency.

Photo of Japanese Prime Minister Naoto Kan

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