Isn't it about time the system for balancing revenue resources was abolished and a system for ensuring a national minimum was established? Reform of the tax allocated to local governments signifies whether or not Japan can throw off the policy target of achieving a "balance" in the age when it was attempting to catch up with the rest of the world, and is an extremely important reform. Late though it may be, discussion has finally built up and this reform must be clearly positioned as a key issue.
"Demerit information" or negative policies, not "merit information," is important when a party takes power
As we have seen above, politically unpopular policies are a point of contention. Previously, simply making pledges in a bid for popularity was no good, but now the issue is particularly negative policies, in that the problem of public finance cannot be put off any longer. In this sense, "demerit information" (expenditure cuts and tax increases) and not "merit information" (expenditure increases and tax cuts) is important when a party takes power.
Demerit information is like, for example, writing "colors may run" on the label attached to a new item of clothing. This kind of information became important in the area of consumption in the late 70s, but at first consumers regarded products to which demerit information was attached as being of poor quality, so the companies were very negative about it. However, in due course the companies which provided this kind of information came to be regarded as reliable. It is the same with risk disclosure by banks. At first, those banks that disclosed their risks were regarded as a major risk, but gradually the banks that made clear disclosures came to be seen as banks with reliable risk management.
It is the same with the pledges of political parties. Most voters know that public finance cannot last with policies that only "present the good side."
