1. Ⅰ.Introduction.
2. Ⅱ. Amartya Sen and the Capability Approach
3. Ⅲ. Keynesian economics and the Japanese economy.
4. Ⅳ　Well-being and economics
5. last
6. Japanese

日本語の記事は別リンク「カトリックあい」になります。（記事の最後にリンクがあります）

Ⅰ.Introduction.

On 22 February 2024, the closing price of the Nikkei Stock Average surpassed the record high of 38,915.87 yen set on 29 December 1989 at the peak of Japan’s bubble economy. Additionally, a new variant of the NISA (Nippon Individual Savings Account) was introduced in Japan. Japan’s business outlook index is at a new high after Nvidia’s strong results. There is a possibility of profit-taking selling. However, this is the start of a new era. The implementation of the new NISA policy has led me to believe that stock prices will continue to rise. This is because Japanese stocks are generally more stable than European stocks, and there are currently no concerns related to real estate, unlike during the bursting of the bubble and the collapse of Lehman Brothers. Additionally, although it is difficult to say definitively, the ongoing war may also be contributing to the positive performance of stock prices. This can be observed from the fact that many companies, who had previously commented on events such as the earthquake in eastern Japan, conflicts in the Middle East, and the war in Ukraine and Russia, have not made any statements regarding the situation in Gaza this time. It is important to note that these observations are not conspiracy theories but rather a reasonable analysis of historical stock price patterns during times of war to gain a better understanding of their impact on the market.

I am not an expert on the subject, so I will not go into detail, but if you are thinking about your future life, I think it is inevitable that you should learn to invest and think about increasing your wealth if you are going to make it in “Japan”.

It can be said that the days of building wealth with fixed-term deposits have returned. However, I decided to address this issue in this column because poverty is still a persistent problem and I wanted to reflect on it a little before criticism of those who did not successfully take advantage of this policy starts years later.

Ⅱ. Amartya Sen and the Capability Approach

Amartya Sen, an Indian economist and professor at Harvard University, has no clear connection with literature, but the economics he proposes is full of elements of liberation, freedom and the pursuit of happiness, which are also themes in literature. He is an authority on welfare economics and social choice theory, which use advanced mathematics and logic in economics, and concepts such as adaptive preference, the capability approach and ‘human security’ are sometimes taught in high school courses in Japan today.　

Sen’s interest in poverty and its impact on individuals can be traced back to his childhood experiences in India, particularly observing the devastating effects of the Bengal famine. His research led him to define poverty as the lack of basic capabilities, emphasizing that individuals should have the freedom to live a life they have reason to value.

In 1998, Sen was awarded the Nobel Prize in Economics for his contributions to welfare economics and his analysis of economic policies. Unlike earlier assumptions that focused solely on the macroeconomy, Sen argued that societal progress should be measured by the well-being and freedom of its individual members.

Sen’s emphasis on human happiness and flourishing highlights the importance of individual freedoms and self-determination in economic development. His ideas challenge the notion that a successful economy is solely determined by its sheer size or growth, stressing the significance of ensuring individual rights and capabilities.

In conclusion, while Amartya Sen’s work is primarily within the field of economics, it incorporates a broader perspective that recognizes the importance of human happiness and the freedom of individuals.

That is why various studies have been conducted on poverty. Margaret Thatcher famously stated that ‘poverty is a lack of character.’ Other studies have examined different approaches to addressing poverty, and even today, there are contrasting opinions on whether the solution lies in giving assistance or in changing our way of life.

A century ago, the writer George Orwell experienced poverty firsthand and remarked that it “crushes the future.” In his novels about the struggles of the poor, he also observed that they would often prioritize indulging in luxuries over consuming healthy vegetables.

Amartya Sen’s economics took a further step by focusing on poverty as an inability to exercise choice and initiative. One might question whether studying Sen’s economics is outdated now or if there are aspects of it that need reevaluation from an investment standpoint. However, I have chosen to examine it primarily from an ethical perspective.

Sen’s economics posits that inclusive and sustainable economic growth is achievable by not only improving economic indicators but also by promoting individual freedom and equality of opportunity. A thriving economy alone does not signify true societal success if inequality and poverty persist. Sen’s economics considers not only economic outcomes but also people’s quality of life and well-being as essential indicators of a healthy economy. Assessing the health of an economy requires a broader perspective beyond economic growth rates and rising stock prices.

Ⅲ. Keynesian economics and the Japanese economy.

The benefits of capitalism are described as efficient allocation of resources, innovation and efficiency improvements through competition, and the protection of individual freedom and property rights. It is also claimed that policies based on Keynesian economic theory during the ‘Showa’ period helped to realise the dream. One of the successful policies of this period was the use of fiscal policy. Keynes advocated the use of fiscal policy to promote economic growth and job creation through fiscal stimulus and public investment. Also important is the theory of imperfectly competitive markets. Keynes argued that when markets are not perfectly competitive, prices and wages do not fluctuate flexibly and stimulating demand has a positive effect on employment and output. Stressing the importance of active government fiscal policy and demand management to help the unemployed, Keynes proposed policies to deal with problems such as business cycles and unemployment, taking into account how the economy would function in an imperfect market environment rather than a perfectly competitive market. These included a ‘mainstay industrial policy’, major public works and infrastructure investment, increased economic growth and employment, an independent Bank of Japan and the use of effective monetary policy. In addition, manufacturing industries such as automobiles and electricity gained strength in trade policy and contributed to increased international cooperation.

On the other hand, there were drawbacks, one of which was the risk of inflation. While Keynesian economics stimulates the economy by stimulating demand, it has been criticised that this could lead to inflation in the long run. The second is the ability of the government to implement it. Keynesian economics requires active government intervention, but the government’s implementation capacity is sometimes seen as limited, making it difficult to implement effective policies.

Next, ‘communism’ refers to a political system that emphasises the role of government in solving poverty and focuses on economic and social management by the state. Communism rejects the private property system of capitalism and seeks to share the means of production and distribute resources equally. The first government of communism is the state, whereas the first principle of capitalism and Keynesian economics is the market. Communism differs from Keynesian policies in terms of economic and social structures and the division of roles. In communism, the role of the state is significant, leaving the central coordination of economic activity and the elimination of poverty to the state, whereas in Keynesian policies, while assuming a market economy, economic stability and public welfare are pursued through state intervention.

One of the reasons why capitalism, welfare, and support for the vulnerable have not worked well in Japan is the limited effectiveness of the basic principles of capitalism, such as the pursuit of profit, in addressing social problems and providing adequate welfare. This highlights the limitations of relying solely on the market as a solution. The lack of sufficient welfare and support in recent times presents a challenge that goes beyond the capabilities of the market alone, requiring solutions that extend beyond market mechanisms. Additionally, the issue of political decision-making adds complexity, as welfare and support for the vulnerable are public goods that require government intervention. Furthermore, political decision-making is often complicated by conflicting interests and values.

Ⅳ　Well-being and economics

To what extent does economics take happiness into account? First of all, economics is not a discipline that is directly concerned with happiness itself. Economics is difficult to describe in many ways, but it focuses on the allocation of resources and economic activity, and studies the economic factors involved in people’s behavior and choices.　Amartya Sen’s economics has brought economics to focus not only on welfare through wages, but also on other factors. Japan has a lower crime rate than other countries, and at the minimum wage level, even without education, you can live above the minimum if you do not choose to work, but this is only one aspect of the guarantee that wages provide.

Although much depends on individual subjective feelings and factors when considering happiness, the suffering caused by poverty should not be dismissed as ‘pampering’ or ‘laziness’. Sen focused on the caste system in India, but what should be done in Japan? One possible solution is to address ‘developmental disabilities’. The increase in the number of reports is said to be due to increased awareness through social media and a lower threshold for identifying the disorder. According to Toshio Kawai, professor emeritus at Kyoto University, “Before the focus on developmental disorders, there were many consultations on self-harm and overeating. This suggests a change in attitude towards mental health issues. In Japan, the need for ‘independence’ has increased compared to the Showa period. In that era, there was a greater division of social roles between men and women, expectations regarding marriage and childbearing, and an emphasis on cooperation rather than individuality. Communities thrived on subjectivity, and lifelong employment and conformity to social norms were the norm. But these dynamics are changing. Developmental disabilities show a wide range of symptoms, but a common feature is considered to be a lack of initiative.

Although the 1995 White Paper on Disability took the positive view that ‘disability is individuality’, we often confuse individuality with subjectivity. Initiative refers to an individual’s ability or tendency to have and act on their own will, beliefs and thoughts. A proactive person is able to pursue goals and express themselves according to their own values.

Individuality, on the other hand, refers to a person’s unique traits and characteristics. It is what distinguishes each person from others and plays a major role in creativity and expression.　No matter how talented and brilliant an individual may be, if ‘individuality’ is stifled by social oppression and poverty, it will lead to a lack of self-reliance and even self-determination. The emphasis on subjectivity is therefore linked to Amartya Sen’s concept of capability. This is not just about treating the mind of an individual; it is about tackling the economy and society as a whole.

last

Finally.

The baptised believer is in the “apostolate of the faithful”, it is said. Spreading the Gospel in society has become a ‘vocation’ in the broadest sense, but in doing so the economy cannot be left out, not only to follow Jesus’ example of saving the poor, but also, as the Lord tells Moses, to ” Let the scales be just and the weights equal, let the dry measure be just and the liquid measure be equal. I am the Lord your God, who led you away from the land of Egypt.” (Leviticus 19:36).　It is also important to link this to efforts to create a just society and to tackle poverty and inequality, using economic and other perspectives. The example of developmental disabilities is just one example, but the definition of poverty is becoming more complex as poverty is not only financial poverty but also relative poverty. But we must not be so false as to pretend that we have forgotten, as if faith would resolve everything. It is precisely the suffering that cannot be easily separated from the reward or happiness, nor easily measured or compared, that we must recognize.

If we were to end this criticism without removing the ethical aspect of the criticism, we might be rich and we might be poor. The experience would be different depending on which side of the story you think you are on. Am I poor or am I rich? However, the opposite entity may be the ‘mirror’ that we will eventually become ourselves. For example, we may be successful, but our children may be poor or disabled. We talk about our children as if they will be successful if they go to university, but they may suddenly become disabled. Suppose you now live in a beautiful house, you have acquired many skills and you have worked hard and positively. And you may be proud of yourself for having worked hard without complaining. But that doesn’t mean you can’t criticise people who complain. Because maybe the person who carried or printed the book you studied made it while complaining. There is an invisible ‘poverty and labour’ in this. I separate the words about this for the majority from the words for the few. If someone is in trouble, it may be a matter of friendship to give them a pep talk, but to speak of poverty to the majority is not something that should be done.

Unfortunately, the world is full of such ‘experts’. If you have something to pray about tonight, I hope you will pray with this in mind and think about what you should do.

Let us walk in the footsteps of Jesus, finding our own happiness even in times of adversity.

Japanese

外部リンクとなります。元々はこちらに掲載されたものを英訳したものです。

・Chris Kyogetuの宗教と文学　⑪「金銭的豊かさ」と「幸福」ーアマルティア・セン経済学から

＊「ウィガンの波止場への道」：正式には「失業者や貧乏人は、食料を買うとき、オレンジや人参といった身体に良いものを買って食べればよいのに「美味しい味」だけを求めてしょうもないものを購入して食べる」

(Author, original citation to be provided at a later date (after April 2024) due to house moving work.)

＊1st Corinthians : 13 : 12: Now we see through a glass darkly. But then we shall see face to face. Now I know in part, but then I shall know, even as I am known.