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Sunday, December 14, 2014

2014 Japanese Parliament Election Sunday Dec 14,2014


Japan's ruling coalition has won a new two-thirds majority in parliamentary elections seen as a referendum on Prime Minister Shinzo Abe's economic policy.

Shinzo Abe's Liberal Democratic Party (LDP) retained its House of Representatives majority.
The LDP will govern with the Buddhist-backed Komeito party after the parties won 325 seats out of 475 - LDP had won 290 seats, with Komeito winning 35seats

The main opposition party, the Democratic Party of Japan, won 73 seats, an increase of 11

Reports said turnout at polling stations was low due to voter apathy and heavy snowfall in parts of the country. The government said turnout was at just 35%, two hours before polls closed. 

Shinzo Abe was elected in 2012 and has tried to revive the economy by raising public spending and printing money.
After an initial burst of growth, Japan slipped back into recession in the second half of this year, which many economists have blamed, at least in part, on an increase in sales tax, from 5% to 8% in April 2014
The tax increase was legislated by the previous government in 2012 to curb Japan's huge public debt, which is the highest among developed nations.

Shinzo Abe says he called the election to get a mandate to delay a second increase in the tax to 10%, scheduled for 2015.
"My 'Abenomics' policies are still only half-way done," Shinzo Abe said on Sunday Dec 14,2014, adding that his government would not become "complacent".
"I am aware that there are still a lot of people who are still not feeling the benefits. But it's my duty to bring [benefits] to those very people, and I believe this election made that clear."

Shinzo Abe's economic policy, launched in 2013, was so wide-ranging that it was named after him. It was designed to help pull Japan out of two decades of deflation and kick-start its stagnant economy.
It involved three main proposals:
  • Printing vast amounts of money to boost Japan's purchase of government bonds (monetary policy)
  • Sharply increasing government spending to help spur growth (fiscal stimulus)
  • Reforming key sectors such as agriculture, healthcare and energy (structural reform).


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