Prime Minister Naoto Kan has survived an internal power struggle and reshuffled his Cabinet, but some economists wonder if he will be able to successfully lead Japan through the economic challenges ahead of it.
Two economists interviewed by The Japan Times on Friday said Kan's focus on job creation is good but that the measures he has advocated so far are not effective. They said Kan should focus first on measures to promote economic growth, which will thus create jobs, and start with measures to strengthen corporate competitiveness, such as deregulation and tax cuts.
"Kan should say that employment comes only after economic growth. When he says more employment can ease deflation, it raises the question how jobs will be created," said Jun Tsukasa, a senior analyst at Nikko Cordial Securities Inc.