The Presidential Candidates Must Devise a Cure for the Economy

The U.S. presidential election campaign is nearing its end. The course now taken by the U.S. regarding its economy and national security will have a significant impact on Japan as well. The current election campaign is mostly centered around domestic policies, such as health insurance reform. There is hope, however, for a debate that extends beyond internal issues.

The Republican National Convention in Florida is currently taking place. Mitt Romney, winner of the primaries and former governor of Massachusetts, accepted his nomination on August 30.

The governing Democratic Party’s national convention is scheduled for September 4 through 6. It is official that President Obama will be running for re-election. Before election day on November 6, the two candidates will face each other in three debates.

The biggest points of contention will be how to fix the American economy, and a long-awaited debate regarding “small government” which has been gathering steam. This is of crucial interest to the wealthy classes, who want to avoid an increase in their own burden. The poor, on the other hand, are calling for increased help through public spending and are eager to protect the “big government” route taken by the Obama administration.

Romney has named Paul Ryan as his running mate. Chairman of the House Budget Committee, Ryan is known to be particularly strict about financial affairs. There is a feeling that the gap between the parties is widening.

Beginning in January, the U.S. will face a conundrum dubbed the “fiscal cliff,” as scheduled tax increases coincide with heavy annual spending cuts. Should U.S. economic policy aim for a sudden significant deficit reduction, it will not only have dramatic effects on the U.S., but will inevitably also destabilize Europe.

How can they rebuild public finance while simultaneously supporting the current condition? Both candidates are aware of the U.S.’ responsibility for the world economy and eager to prescribe an easy cure that will resuscitate the economy.

There has, however, been a trend toward more small compromises in terms of diplomacy and the U.S.-Japan Security Treaty.

The Romney camp, wanting to regain a “strong America,” generally displays an unyielding stance toward diplomatic policy. Robert Zoellick, the former president of the World Bank with a pro-Chinese attitude, is also actively taking part in discussions again. Differences have all but gone away between the Romney camp and the Obama administration, which has dealt with China using both tough and flexible policies.

The Hatoyama administration has dealt a blow to Japanese-U.S. relations. If U.S. diplomatic policy becomes more stable, the revival of these relations will also be an easier task to tackle. A report concerning a renewed alliance between Japan and the U.S. published by former Secretary of State Richard Armitage and other non-partisan Japan specialists will serve as a useful reference.

Romney commented in a recent speech that Japan is “…a nation that suffers in decline and distress for… a century.” But without any Japan experts around, he seems to be repeating second-hand opinions.

It is not a pleasant statement for Japanese people to hear and can be regarded as evidence that the United States has lost interest in Japan. The Japanese government must hurry to establish connections that will remain intact, regardless of which presidential candidate wins.