The gap between rich and poor seems to be widening worldwide, the result of government deregulation and the dominance of market-led economic policies. As businesses are given freer rein to do whatever they want, wages at the lower end of the pay scale drop. Government revenues consequently shrink, thus making it more difficult to erect social safety nets for those who fall off the employment grid because of restructuring and other private sector "rationalization" measures.
However, as the government bailouts of the financial and automotive industries in the U.S. show, big business often needs help when the proverbial invisible hand of the market turns against it. The bailouts remain controversial in America. Japanese bailouts are less contentious, mainly because the media has yet to identify them as bailouts.
As mentioned in this column last December, the "eco car" program has less to do with promoting the use of environmentally friendly automobiles — its ostensible reason — and more to do with helping Japan's auto industry survive the recession. Under the program, consumers who buy new electric, hybrid or clean diesel vehicles do not have to pay the automobile acquisition and weight taxes, and they can receive a government-subsidized rebate.