Japanese Prime Minister Takaichi’s Party Wins Super Majority in Snap Elections

What Happened?

Japan’s Prime Minister Sanae Takaichi’s Liberal Democratic Party (LDP) won a resounding victory in the recent snap elections, securing three hundred and sixteen out of four hundred and sixty-five seats in parliament. The LDP’s coalition partner, the Japan Innovation Party, won thirty-six more seats, giving the coalition a total of three hundred and fifty-two seats, which is a super majority.

Stocks in Japan rallied upon news of the election’s outcome. The Nikkei index rallied by more than five percent in early trade on Monday, briefly crossing the 57,000 mark for the first time.

Why it Matters

Japan is facing several challenges domestically and internationally. At home, Japan has faced a sluggish economy, rising costs of living, and a demographic decline as the birth rate has continued to plummet.

A more aggressive China and North Korea have posed increasing security challenges for Japan. With the new super majority, Prime Minister Takaichi will be able to implement many of her party’s policies with minimal opposition. 

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The calling of snap elections was a major gamble for Prime Minister Takaichi, because both of her predecessors lost their majorities during their tenures. While the security challenges from China and North Korea are serious, the main focus of the LDP now will likely be on domestic challenges facing Japan.

The high cost of living is a major concern because it is most likely linked to Japan’s declining birth rate. Because housing is so expensive, many young Japanese are putting off starting families. PM Takaichi has not yet given specifics on how she intends to lower housing costs.

PM Takaichi has pledged to cut taxes and increase government spending, but how the difference will be made up remains unclear. Japan’s government already has a significant amount of debt, and increasing that would be a risk both politically and economically.

She has been especially popular with younger voters, which likely reflects her focus on reducing housing costs and the cost of living in Japan. An increased turnout from younger voters likely helped PM Takaichi achieve such a wide margin of victory.

Even though PM Takaichi leads Japan’s LDP, her political views would be considered of the conservative variety in the United States. She will travel to Washington, D.C., later this week for her second meeting with U.S. President Donald Trump, and thus far, the relationship between the two has been cordial. 

How it Affects You

Japan is a key ally for the United States in the Pacific region, both militarily and economically. Military bases in Japan provide American air and naval forces with the ability to operate much closer to China and North Korea than they otherwise could.

The U.S. and Japan trade over a quarter of a trillion dollars’ worth of goods annually, making American consumers and workers stakeholders in the new policies PM Takaichi will implement in Japan.

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