Having read the Vox Populi, The Asahi Shimbun, 31st July 2026, I have the following reflections.
The column was titled “Like rain, sudden tax cuts do not fall evenly on an unequal society”. It doubted the Prime Minister’s proposal to cut consumption tax on food from 8% to 1% if my understanding is correct.
Couple of concerns were expressed. First, it correctly cited the principle that reductions in consumption tax actually benefit the rich more, as they spend more than the poor. Second, it questioned the feasibility and costs-effectiveness of the temporary 2-year cut: what assurances are there that the tax rate can be brought back after 2 years, and ultimately, whether a reduction of government revenue is a responsible act, or if policy measures are a better alternative.
The intention of the article was noble. I particularly agree with its conclusion:
“Rain is never fair. In an unequal world, it gives rise to countless miseries. The task of politics is to correct that unfairness.”
And also the quote the article started:
“The rain falls on the rich and on the poor, on the just and on the unjust. But the truth is that the rain is not evenhanded at all, because it falls upon an inequitable world.” (Lao She 1899–1966)
A different perspective I seek to express here may start with another quote, replying to the quotes above:
“The maxim, "Nothing prevails but perfection," may be spelled paralysis.” (Winston Churchill 1874-1965).
I of course do not know anything more about the economy of Japan than her government. But as a non-speculative investor, what I have seen in the past 2 years truly persuades me that it is not a time for idealism or perfectionism. What is needed is a pre-emptive and urgent protection of public morale, and the confidence of international investors.
Again, as a non-speculative investor, I see that general public is the long-term backbone of a nation’s economy. Protecting people’s morale is the top priority right now, and affordable food prices are critical to that.
The urgency is obvious. We have seen the international intervention on Yen’s exchange rate this week. We see the urgency. We know the co-relation between Yen’s exchange rate and her household expenditure in the last couple years. We can gauge how deep it will hurt, and the long-term consequences if the plummet of Yen is to persists.
While it is really not up to me to dictate how a foreign sovereign should conduct her affairs, I guess it would not be too much to suggest that the Prime Minister’s proposal can be discussed beyond a “yes or no” level, and that multiple, alternative plans can also be in place amid further uncertainties and developments. Baseline is, some solid plans should be on the cards as soon as possible, and they should provide reassurance that food prices will remain affordable in worst case scenarios.