Japan’s economic growth is inseparable from fiscal capacity and national security.
Denying growth while enjoying its past benefits is ethically indefensible and strategically dangerous.
This analysis exposes how deflation and growth denial weaken Japan and embolden China.

March 8, 2017
The following is a continuation of the previous chapter.
Before that, growth-denial advocates such as Makoto Hara and Chizuko Ueno are so gravely culpable that one might consider restricting their “freedom of speech” on three points.
The first point.
Whether Hara or Ueno, both have lived comfortably and prosperously in Japan while benefiting from the country’s past economic growth, namely the expansion of income.
Despite having personally enjoyed the fruits of Japan’s past economic growth, they deny future growth.
They live comfortably thanks to past growth while telling future Japanese citizens to live in a nation that is becoming impoverished.
This is ethically unacceptable.
If Ueno truly insists that “we should all become poor together,” she should first set an example by donating all of her assets to the national treasury and becoming poor herself.
I state this unequivocally: those represented by Ueno who argue that “it is fine if Japan becomes poor” are themselves desperately accumulating and hoarding Japanese yen.
They obsessively save Japanese yen for themselves while telling others that it is fine to be poor, a shameless group indeed.
The second point.
Hara and Ueno do not understand that GDP is the source of tax revenue.
GDP is the total income of a nation.
And we pay taxes out of our income.
Inevitably, there is a strong correlation between GDP and government tax revenue.
Countries with larger GDPs collect more tax revenue and therefore have larger fiscal capacity.
Naturally, as fiscal capacity expands, it becomes possible to allocate large sums to military expenditure.
Without growth, national defense collapses.
Before the Japanese economy fell into deflation due to the austerity policies of the Hashimoto administration, Japan alone accounted for more than 17 percent of global GDP.
Was it merely a coincidence that Ryutaro Hashimoto fell into a honey trap set by China, that Japan’s deflation deepened, that the economy stagnated severely, that the advance of the Turntable of Civilization came to a halt, and that China’s expansion began?
After that, Japan’s share of global GDP continued to decline, falling to as low as 5.6 percent by 2015.
Meanwhile, China continued its economic growth, benefiting as well from direct investment from Japan.
China’s GDP has already grown to more than twice that of Japan.
If Japan’s economy fails to grow while China’s economy continues to expand, what will ultimately happen?
Within about twenty years, an era will arrive in which China’s GDP is ten times that of Japan and its military spending twenty times greater.
How is Japan supposed to confront a Communist Party dictatorship that spends twenty times as much on its military?
The brutal answer is that it cannot.
In order to leave Japan as “Japan” to future generations, our country must grow economically.
And for economic growth, escaping deflation is indispensable.
However, growth-denial advocates such as Hara and Ueno spread fictitious theories of “fiscal collapse” and deny growth, thereby obstructing fiscal stimulus necessary for Japan to escape deflation.
The third point.
Many growth-denial advocates are mistaken, but present-day Japan is actually facing an excellent opportunity for economic growth.
What is economic growth?
It is, of course, the expansion of GDP.
Then how can GDP be expanded?
Does the population need to increase?
Don’t make me laugh.
There has never been a country on Earth that achieved economic growth through population increase.
What is necessary for economic growth is an increase in output per working producer.
The expansion of GDP per producer is called an improvement in productivity.
Economic growth is an economic phenomenon achieved solely through productivity improvement.
Japan’s population is currently declining.
Certainly, the population is declining, but whether the population increases or decreases, countries that grow will grow, and countries that do not will not.
This manuscript continues.