Koizumi Seeks LDP Presidency, Promises ¥1 Million Wage Increase by 2030

Shinjiro Koizumi, a leading candidate for Japan's prime minister and president of the ruling Liberal Democratic Party, has unveiled a comprehensive economic plan centered on combating inflation and fostering wage growth. He proposes prioritizing economic growth by shifting policy focus from deflation to inflation, aiming to raise average yearly wages by ¥1 million by fiscal 2030 and boosting investments by ¥135 trillion. Koizumi plans to immediately submit a supplementary budget for fiscal 2025 to counter rising prices, including abolishing the provisional gasoline tax and overhauling income taxes. Emphasizing the importance of government and Bank of Japan cooperation, he aspires for synchronized fiscal and monetary policies to achieve stable prices and solid economic growth, continuing the spirit of 'Abenomics.' His approach suggests using increased tax revenues from inflation to fund growth-oriented policies while maintaining fiscal discipline. Koizumi's proposals have drawn significant market attention due to their potential to increase fiscal spending and stimulate Japan's economy during its transition from deflation to inflation.