What reforms can Mr. Fukuda implement and strengthen to solidify Japanese economic growth?
Deregulation, fundamental reforms in agriculture, adjustments in vested interests–“it’s really going to take a lot of strength,” especially with the upper house in non-LDP hands, said Mr. Takenaka. Tokyo University needs to be privatized and brought into the top five universities worldwide, from top 20 now. Tokyo must be a financial center. Haneda airport needs to be open 24 hours a day so people can go between Tokyo and Hong Kong in a single day. When will there be reforms in individual tax rates and the social welfare system? Reforms aren’t adopted because they’ve been proven to create a more efficient economy but “because a political leader is able to tell a story,” as Koizumi did, a story that says that the economy has to adapt or it will fall behind, Mr. Hubbard responded. The U.S. benefits from the high Japanese corporate tax rate–“they’re the only one worse than we are, and so we need you to stay so high”; with labor hours shrinking in Japan, “Japanese growth will be more than
