Prime Minister Kan and Economic Minister Yosano say a hike in the consumption tax will be coupled by a re-examination of the social security system and tax code. They're trying to slip by with faulty logic. This sort of obvious hoodwinking of the populace is not a proper use of government authority. They should know that this insensitive major tax hike in the middle of a deflationary spiral will bring Japan's economy and its people to their knees.
Prime Minister Kan is ruled by the principle that fiscal reconstruction reigns supreme. No matter what, he's scheming to raise the consumption tax, appointing one of the Economic Ministry's minions, Kaoru Yosano, as minister for fiscal affairs, and bulling ahead with this major tax hike.
To make this happen, he has been fudging on two points:
First, while his true aim is to execute a huge tax hike, he refers to it as a "social security" issue. A debate on social security helps to mask his plans for a major tax hike.
Another smoke screen he sets up is that while the deflationary spiral is the most pressing issue the nation needs to overcome, he maintains that the most pressing concerns are fiscal reconstruction and social welfare. He should know that a major tax hike in the middle of a deflationary recession will bring the economy to its knees.
Kan and Yosano are blurring reality in these two ways. The national media in Tokyo have been furthering their cause. The mass media is helping to plant these faulty seeds in the minds of the populace. It's a dangerous ploy. The Japanese government should be focused on escaping the deflationary spiral and building up the economy and employment. It needs to find jobs for its people. To do this, it should be aggressively pursuing public-works projects.