For voters, the biggest issue by far in the Aug. 30 Lower House election is the economy. Strong economic growth underpinned the Liberal Democratic Party's many years of rule. By distributing wealth to various interest groups, the LDP was able to satisfy most sectors of Japanese society.
But as the economy matures, it has become difficult to sustain strong growth and the LDP's system of rule based on a close relationship among politicians, bureaucracy and industry has reached its limits. Political parties need to offer a new vision for economic growth.
The economy grew an annualized 3.7 percent in the April-June period from the previous quarter — the first rise in five quarters. By taking advantage of signs that the economy appears to have hit bottom, Prime Minister Taro Aso is calling on people to allow the LDP to remain at the helm of government. He emphasizes that the government's four economic stimulus packages have helped the economy to rebound.
The LDP's manifesto says the Japanese economy will achieve annualized 2 percent growth in the last half of fiscal 2010 and will create demand worth ¥40 trillion to ¥60 trillion, "securing" 2 million jobs. But it fails to mention what concrete measures will be taken to reach that goal.
The Democratic Party of Japan takes a different approach. It emphasizes measures to directly increase household income in the hope that this will expand consumption and stimulate economic growth.
The DPJ says it will free up ¥16.8 trillion in four years to carry out its policy proposals mainly by reworking the nation's ¥207 trillion budget and eliminating unnecessary projects. But overhauling the budget will be time-consuming and the uncertainty surrounding the process could have a negative impact on economic activities. Voters must decide Sunday whether to support the LDP's conventional method or the DPJ's more novel approach to revive the economy.