As the new year kicks off and the coalition government of the Liberal Democratic Party and Komeito gets into full swing, Japan will see a drastic change in the direction of policies set by the DPJ government during its rule of three years and three months. It will not be a new direction, however, but rather largely a revival of the policy direction that Prime Minister Shinzo Abe adopted — or tried to adopt — during his first administration from September 2006 to September 2007.
People will likely soon feel the effects of the new Abe administration's policies, but it is unclear whether his approach to the economy will improve their lives.
Due to Mr. Abe's economic policy, which calls for unlimited monetary easing by the Bank of Japan, financial markets may show positive signs. But the nation's poorest citizens will likely face greater hardships due to the Abe administration's social policy, which embraces the conservative idea of "self-help."