Inflation, Wages, and the Cost-of-Living Crisis

On today’s podcast, we’re taking a break from American politics and diving into the seemingly consensus-driven — but in reality quite messy — politics of Japan.

I spoke with Kenneth Mori McElwain, a professor of comparative politics at the University of Tokyo, on the final day of my two-week trip to Japan. It was a welcome chance to step off the American news-cycle hamster wheel and use the time to get a sense Japanese politics.

The stereotype of Japanese politics is that it is staid and steady, conservative in both the capital-“C” and lowercase-“c” meanings of the word. The conservative party, the Liberal Democratic Party, has governed Japan for 66 of the 70 years it has existed. But even with this apparent political consensus, a bias for the status quo has made it difficult, at times, to tackle big questions.

The LDP remains in power today, but Japanese politics has not felt especially staid or steady lately. Last month, Sanae Takaichi, the country’s first female prime minister, secured the largest majority in Japan’s postwar history — a two-thirds supermajority in the lower house. That came less than two years after scandal cost the LDP 28 percent of its seats and forced it into minority government.

Now Takaichi is confronting a daunting set of problems. Japan has finally emerged from decades of deflation, but wages have not kept pace with rising prices, contributing to a cost-of-living crisis. While I was visiting, gas prices hit a record high.

At the same time, Japan’s pacifist constitution is once again a live political issue. Drafted during the U.S. occupation after World War II, it renounced Japan’s right to wage war. In its 80-year history, it has never been amended, making it the world’s longest-lived unamended national constitution. Takaichi says she wants to change that.

Japan also famously faces a rapidly aging population. Takaichi has promised to deliver economic growth, while maintaining tough limits on immigration and avoiding a further expansion of the national debt.

And that is before getting to some of the country’s other high-profile cultural debates, including whether women should be allowed to become reigning empresses and whether married couples should be allowed to keep separate surnames. At the moment, the answer to both is no and Takaichi wants to keep it that way.

The big question facing Takaichi at the moment is whether she can translate her sky-high popularity into tangible results for the Japanese people.

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