What is needed to sustain and strengthen the evolving Japanese economy? In this text, the author—a private-sector member of the Council on Economic and Fiscal Policy—discusses the economic policies and challenges that the Takaichi administration should pursue in its quest for a “free economy” and a “strong nation.” On October 21, 2025, Takaichi Sanae took office as Japan’s 104th prime minister. While she is notable for being Japan’s first female prime minister, she is also remarkable in other ways. She is not from a political dynasty; she graduated from a public high school and paid her own tuition to attend a national university. She is not a career bureaucrat from ministries or agencies. Within the Liberal Democratic Party, she belongs to no faction yet has become the foremost policy expert in the political arena. It is precisely Prime Minister Takaichi’s capabilities that we should ... ... [Read more]

“I haven’t thought about it specifically yet, but after working hard until I’m in my 60s, I’d like to retire completely and be free at the appropriate time. I’d like to spend my retirement years comfortably, focusing on the things I enjoy, such as following pop idols/ entertainment interests and hobbies, while also taking care of my health.” For young people, this is likely the retirement future most people hope for. But is this future really possible? Saving money is essential to achieving a comfortable life. The Public Opinion Survey on Household Financial Behavior (Central Council for Financial Services Information [now Japan Financial Literacy and Education Corporation [J-FLEC]]) looked at the financial assets of households with two or more people in their 40s. The survey found that, in 2003, over 60% of the households had assets exceeding 5 million yen. By 2023, however, this ... ... [Read more]

  In an era when free trade is under threat, how can we uphold the principles of free trade and ensure economic security? Suzuki Kazuto unravels the dilemma between the two.   The “weaponization” of the economy and the rise of economic security Free trade is in crisis. The Trump administration’s tariff policy aims to rebuild trade by placing “fairness and balance” above economic efficiency. For the United States, this means that a growing trade deficit through free trade is “unfair,” and rebalancing is important. Therefore, the US uses tariffs to reduce imports from other countries. If imports are required, the revenue generated from tariffs can be used to recover lost wealth. Whether this policy will produce the results President Trump claims and what impact it will have on the American economy is impossible to predict. Nevertheless, it is clear that this tariff policy ... ... [Read more]

Supply chain management to prepare for geopolitical incidents requires strategic thinking, where predicting the reaction of geopolitical competitors is essential to designing effective countermeasures. Deterrence is the key for promoting supply chain resilience Friend-shoring is a double-edged sword Risk can be alleviated by trust-building through inter-firm networks across national borders With looming uncertainty in the global business environment, the pursuit of economic efficiency is increasingly associated with supply chain vulnerabilities. “Resilience” became a keyword in supply chain management and now forms the core aspect of economic security. Supply chain vulnerabilities are attributed either to (1) physical risks, (2) cyber risks, or (3) geopolitical risks.[1] Physical risks include those of natural hazards, climate change, and pandemics. Cyber risks are represented by malicious attacks on critical infrastructure or theft/leakage of confidential data, while nowadays the disinformation maneuver using generative AI is gathering sharp attention. Geopolitical risks ... ... [Read more]