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significantly reduced productivity. What is more,
Japanese consumers must pay the price through the
tax money spent subsidising farmers and in the
higher retail price of rice compared to other countries.
Meanwhile, part-time farming households tend to
have higher incomes than full-time farming
households and households of salaried workers. This
is a result of the protectionist policies.
Misguided agricultural policies have deprived
Japan’s regions of growth opportunities
In passing, it is widely felt that protection of Japan’s
unproductive farming sector could prevent the
country from joining the TPP to the detriment of
export opportunities for Japan’s manufactured goods.
It would certainly be unfortunate if agriculture – a
mere 1% of GDP – were to deprive Japan’s exporters
of growth opportunities, but the problem does not
end there.
In the US and other developed nations, agriculture is
not only an export sector in its own right, boasting
high productivity, but is also an industry capable of
attracting young workers thanks to its relatively high
income level. Japan’s misguided agricultural policies,
on the other hand, have deprived regional economies
of growth opportunities and prevented income
disparities with urban areas from being corrected.
Maintaining protective regulations will not
advance overall economic welfare
Consumers suffer the most from regulations
preserving and protecting vested interests.
Maintaining such regulations will not advance the
public’s economic welfare. Producers capable of
supplying the goods/services that people want are
not entities run or supported by the government, but
private-sector agents capable of creating innovative
products/services in a competitive environment.
If the Kan government truly wants to put people’s
lives first, deregulation is necessary
The same thing can be said for social security
services. Regulation – rather than a lack of fiscal
resources – is the main reason why the
nursing/healthcare services sought by the public are
not being supplied. Thus, while deregulation might
seem on the surface to be a policy benefiting
business, it will also allow consumers to find
companies that efficiently supply desired
goods/services at low prices.
If the Kan government truly wants to put people’s
lives first, deregulation is the necessary means.
“Opening Japan,” therefore, should lead to greater
affluence.
Ryutaro Kono 13 January 2011
Market Mover
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