From the article of 'Petrel'
No.662 / January 18, 1998

Please send us your opinion and the impression about this article without reservation.

Hashimoto regime to which the lack of policy is  criticized.

Then, is it good in case of the Keynesian principle?
It is going to sink in the interstice of the measures against business and the financial rebuilding.


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The regular session of the Diet was held, and the Prime Minister Hashimoto made a proud gesture in his speech at the beginning as "I will not cause the world panic from Japan" again. However, the stock market responded to this in the big price cut. It was judged that he did not go out of the current description at all and there was no prospect to overcome the panic. Actually, the panic seems to become deepen and to be developing worldwide every day. The workers who have lost their job all over the world are thought to be going to reach 120 millions persons already. It is a huge figure. On the top of that, if the United States "falls down," the present recession centering on Asia will appear exactly as the world panic. And, we cannot say that there is not the possibility at all. I wonder how would the monopolistic capital of the world try to get over this world crisis of capitalism and could get over?
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It is a main problem of the capital camp how to overcome the economic recession that is deepening.

The predominant viewpoint is the one that the consumption expansion is just the key to overcome the recession because the cause of the present recession is in the "consumption shortage." They say that the tax reduction of 2 trillions yen executed at the end of last year is the single term one and the scale is also small, so it is definitely insufficient, so and so.

The voice that it is necessary to adopt the financial expansion policy for business recovery as long as even temporarily shelves the financial rebuilding becomes clamorous even in the Liberal-Democratic Party. The opposition parties are also in a large chorus of the tax reduction, that is, the union association sect of newborn concentrating six party is expressing the tax reduction of 6 trillions yen, the Free Party and the Shamin Party that is a snake in the Hashimoto regime's bosom are also demanding to make the tax reduction of 2 trillions yen permanent, and so on. The Communist Party is emphasizing the expansion of consumption for not to miss the bus, too.

I wonder whether the expansion of the tax reduction and consumption can overcome the recession or rather it brings the collapse of finance, so it prepares another failure of the whole "National economy," too. It is really a problem.

Might you the bourgeois not have expressed the rebuilding of finance with putting the voice together, and not have mightily shouted that you lost all the deficit-covering bonds by several years later (By 2003) until recently?

Might you not have roared that the Keynesian principle likely to lose the "moderation" of finance has failed, good-by "big government," the administrative reformation and the finance rebuilding is just the new problem, capitalism cannot revive or survive as capitalism without that.

Nevertheless, it hardly out of your mouth when the insistence flatly denying and betraying the insistence and policy of the financial rebuilding and "Small government" is emphasized and explained now.

Hashimoto is criticized severely as Hashimoto is not Roosevelt but Hoover, and being needed now are not Hoover but Roosevelt.

For the great depression in the twentieth century having started in 1929, Hoover said "It is a natural process of capitalism, so we need not to be panic, it will be overcome before long," he adopted the liberal policy depending entirely on others, the "traditional" policy exactly left to "Judgment" of competition and market, and had been standing in so to speak the anti-Keynesian standpoint without understanding the realities of the crisis and the seriousness. They say that just such "do-nothing" standpoint deepened the panic further, Hashimoto also does not try to do anything only by saying "I will continue the financial rebuilding policy" like Hoover, he does not understand the seriousness of the present economic crisis.

Oppositely, Roosevelt who aggressively confronted the panic is just the new ideal image of you the Japanese bourgeoisie who is rapidly "shifting." They say that it is necessary to progress "aggressive" policy decisively in the large scale now with clearing all hesitations away as Roosevelt.

They say that it is necessary to do their best to overcome the present crisis, no matter what it causes a variety of minus later -- inflation, bubble, and the bank fully holding bad debts -- it is not the time to worry about such things.

According to an irresponsible critic, he says that the present crisis is coming from the possession way of feelings, that is, mental one, so "Business recovers" at once if executes the policy leading to a bright mind. Such a stupid person must be comprehended that the problem of the contradiction and the difficulty of capitalistic economy is not the problem of "Soul" at all and will not be so in the future. It might be too clear that the present capitalistic recession is not the contradiction to be overcome by changing the possession method of feelings.

It is your free to praise Roosevelt. However, how easy can you forget the thing that the "New Deal" policy of Roosevelt can never agree with the "New" Liberal policy, which insists "small government," administrative reformation, free competition, and the denial of the government's "intervention?"

Where did you go on the whole, who roared for ardently so much that Japanese capitalism could do nothing but decline and dismantle without financial rebuilding, without going by deregulation, own responsibility, and free competition?

The Keynesian policy that you begin to do might be exactly your suicide act if it is assumed that what you have insisted up to now is correct. Because you had concluded that it promotes financial failure further and leads to the dismantlement of the nation and the failure of the entire economy after all.

However, they cannot afford to think of the consequences. How correspond to the present recession or panic is a prior settlement, and they do not care about the financial collapse that might come someday in the future. Just the present crisis is the problem and they cannot afford to think of the crisis that might come in the future.

The spur-of-the-moment principle, opportunism, and unprinciple of bourgeoisie are like that, and more badly, they are not ashamed of this at all.

They adopt a policy thoroughly contradicting financial rebuilding though expressing it, and openly, posthaste carry out the policy to relieve the bank plainly with saying not to relieve the bank. (Look at the investment of the public capital of 30 trillions yen performed for large banks.) Although it has passed only a short term from they expressed to decrease the national debt and the finance rebuilding act was approved, they issued additional notes of the national debt at once and are expanding it more and more. What they have done actually is only to make the powers of the government mechanism powerful and concentrated though saying that it was administrative reformation. The word of accomplishment of the free competition or the self-responsibility has been already blown off somewhere.

They believe that all are justified and sanctified if they say that it is necessary to evade the panic.

Even the nation of Japan falls into the crisis as long as the present recession changes and advances to the panic. Therefore, the evasion of the panic is the supreme order. To evade panic, the finance rebuilding, the administrative reformation, the accomplishment of free competition, the self-responsibility, the "small" government, all these must be shelved temporarily, and these "beautiful ideal" must be abandoned.

Even if the evade of panic would become to be the relief of defective bank, would go against the financial rebuilding, would result in a big government, would mean the re-adoption of the Keynesian principle ardently denied so much, they cannot afford to care about such things. Because, not to relieve the defective bank and to pursue the small government thoroughly to the end means the panic exactly. If refuse the big government or the relief of banks there remains no selection but panic. Just such dilemma exposes how deep the contradiction that the present capitalism and bourgeoisie have sunk is and it is what cannot be easily overcome.

If you want to evade a chain bankruptcy and a large amount of unemployment you must accept, protect, and practice all things such as the mobilization of finance, the the expansion of national confidence, the bubble as the result, the national debts accumulating more and more, that is, the bankruptcy of nation, and the big government, which have been denied ardently and shouted to overcome by the bourgeois power recently.

When becoming so, it is extraordinary to say the abuse of the Keynesian principle. Because, what you want to do now is exactly what Keynesian had insisted, so you must even appreciate Keynesian. Is not Keynesian just a great benefactor of you, who made up a system to relieve you from crisis with forecasting the situation of such capitalism or seeing the reality? (I do not ask here whether it is the true plan of relief. However, "a drowning person will catch at a straw.") You should be deeply ashamed of scattering the abuse and bad things of Keynesian for a long time since about 1980 and suitably set up Keynesian as your family altar again.

It is a bourgeois fantasy that you can dissolve the capitalistic contradiction by such as tax reduction no matter what it might be 2 trillions yen or not the temporary one but the permanent one, or not 2 trillions yen but 6 trillions yen.

The reason is from the simple reason that though the root of the present recession is in the capitalistic production relation, the tax reduction is only the problem not affecting the production relation but affecting the distribution relation that subordinates to it. Because it does not pound the root of capitalism, it might be essentially powerless in the fight against the capitalistic contradiction and for overcoming it.

Of course, it might be possible to solute the capitalistic panic in a sense as long as the worker's "Consumption," that is, the pay, would rise at the height of denying the exploitation of the capital. However, it is likely that the panic is not lost under capitalism but the capitalistic production style itself will be raised and overcome then. In such sense, the insist that we can overcome the panic by the consumption expansion is only the fantasy. It only teaches the depth of corruption and "establishment-immanence" of the Communist Party that the party is talking such a silly fantasy with the bourgeois. This party fell to the position of the capital's servant.

Of course, the bourgeoisie hesitates somewhat to adopt plainly the Keynesian principle. There appears the Reaganic technique, that is, the way that such as "The Japan Economic Newspaper" emphasizes as to tie the tax reduction and the deregulation, the tax reduction and the pursuit of finance rebuilding is not contradict.

However, this way also returns and converges actually in the Keynesian way of course. Because the insistence that the tax reduction is the finance rebuilding so and so (because, if the business will recover by the tax reduction, the revenue will also increase and the state of finance will be improved.) is only the empty talk to suit the appearance, the distorting logic as "There is no knowing where the effects of an event appear," or an empty wish.

The insistence of the bourgeoisie is not only doing an about-face at once but is self-contradicted thoroughly and is falling into the dilemma in the deepening of the capitalistic contradiction.

They cannot execute even somewhat consistent and certain policy already, fall into a panic, and only go this way and that. Just this might be exactly an expression of the dismantling of the capital rule.

Give death to the rule of capital that has decayed and can produce only disaster for the workers!