For Tomorrow 2
The Underlying Strength of the Japanese Economy
I believe that the Japanese economy still has significant potential.
Japan has excellent human resources and enormous financial assets.
However, we have not yet connected these to new ideas and investments that would serve as seeds for growth.
It is said that the reason productivity per capita is not increasing is that labor-intensive workplaces reliant on low-wage labor are being preserved.
Out of 35 million full-time employees, 15 million work part-time or in temporary positions, with many of these jobs paying close to the minimum wage.
We need to create a safety net that allows those working in non-regular employment to acquire the skills needed for higher-paying, more productive jobs without worrying about their income.
The internal reserves of Japanese companies have grown from just under 350 trillion yen in 2014 to over 500 trillion yen in the past decade. However, Japanese companies are hesitant to invest in expanding production, as they do not see growth potential in the domestic market.
Therefore, the government must implement regulatory reforms focused on solving social issues to create growth areas.
For example, by promoting regulatory reforms that maintain the number of local bus routes, we could create investments that accelerate the practical implementation of autonomous driving technology.
It is predicted that Japan's electricity demand will surge due to data centers and AI. If the government sets higher targets for offshore wind power generation and increases the predictability for companies, we can attract investment into this sector.
Japanese companies have historically achieved economic growth through their "flexibility" in adapting to change and "resilience" in creating change.
If we can implement the necessary reforms to break through the barriers that hinder this strength, I believe Japan will once again rise powerfully on the global stage.
If Japan’s GDP is currently on par with Germany, which has two-thirds of our population, then by removing these barriers, Japan should be able to grow by 1.5 times its current size.