Reply #42: Why Abe Won't Be Japan's Answer to Ronald Reagan - WTF?

[54anickel]

http://www.bloomberg.com/apps/news?pid=20601039&refer=columnist_pesek&sid=aDaC_FYt6HGM

Jan. 31 (Bloomberg) -- Shinzo Abe seems to be channeling the spirit of Ronald Reagan. Japan's prime minister is championing Reagan-like policies such as restoring national pride and deregulating a rigid economy.

Given Abe's focus in his first four months, it's not surprising that pundits are buzzing about ``Morning in Japan.'' It's a not-so-subtle reference to the U.S. president's 1984 re- election campaign. Reagan ran on a platform of the U.S. being ``prouder, stronger, better'' after his first four years.

Many credit Reagan, who died in 2004, with restoring U.S. power and prosperity after a period of economic hardship and national soul-searching. It's not unlike what many of Japan's 127 million people have entrusted Abe to do.

They are likely to be disappointed.

Abe's predecessor, Junichiro Koizumi, unleashed a bit of Reaganomics on Asia's biggest economy in his five years in power. He worked to push through spending cuts, tax reductions for the wealthy, privatization and deregulation. Koizumi had to move gingerly, given Japan's preference for consensus over conflict. Yet his direction was clear enough.

The idea always was for Koizumi's successor to build on his achievements, no matter how incomplete. Abe's charge was to bring Japan's recovery to the next level, encouraging companies and households to spend more and making an over-regulated economy more efficient.

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