Major Japanese corporations like Mitsubishi Heavy Industries and Kawasaki Heavy Industries stand as primary beneficiaries of the government's new defense strategy, which significantly increases military spending. Mitsubishi Heavy Industries, for instance, reported a 15% increase in its defense division's revenue in the past year, even before the new strategy was formally announced. This surge in corporate profits contrasts sharply with the limited wage growth and temporary contracts workers have historically faced in government-backed industrial initiatives.
Last month, Japan's government announced a new defense strategy, committing to increase military spending to 2% of its Gross Domestic Product (GDP) over the next five years. Prime Minister Fumio Kishida framed this move as essential for national security and a driver of economic growth through domestic production and job creation. This policy marks a significant departure from Japan's post-World War II pacifist constitution, which has long constrained its military capabilities.
Profits for Capital, Burdens for Labor
The defense budget is projected to reach 11 trillion yen (approximately $75 billion USD) annually by 2027, a substantial increase from 5.4 trillion yen in the past year. Much of this expanded budget is earmarked for acquiring advanced weaponry, including long-range missiles and stealth fighters, and for bolstering domestic arms manufacturing. These contracts funnel public funds directly into the coffers of private corporations, ensuring consistent surplus extraction.
Critics, including opposition lawmakers and peace activists, warn that this military expansion will divert crucial funds from essential social services and worsen the national debt. Dr. Kenji Tanaka, an economist at Tokyo University, cautioned that "while there might be a short-term boost in specific industries, the long-term economic benefits are questionable, especially if it comes at the expense of public welfare programs." A recent poll indicated that 55% of the public shares concerns about the economic impact, while only 38% support the plan.
The government claims the strategy will create "tens of thousands" of jobs in manufacturing and research, particularly in economically struggling regions. However, union representatives from the metalworkers' federation expressed deep skepticism. Akio Sato, a union spokesperson, noted that past government industrial initiatives often led to temporary contracts and limited wage growth for workers, while executive bonuses soared. "We've seen this before," Sato stated. "The profits go to the top, and workers get crumbs, often with increased pressure and dangerous conditions." This pattern of wage suppression remains consistent.
The State as Enforcer of Capital's Interests
Japan's defense exports have seen a modest increase since 2010, following a relaxation of export rules. The new strategy aims to further boost these exports, positioning Japan as a more significant player in the global arms market. This aligns with broader geopolitical shifts and escalating regional tensions, serving to secure new markets and expand capital accumulation for the transnational defense industry. The government's plan also includes provisions for research and development into dual-use technologies, blurring the lines between defensive and offensive capabilities.
The Prime Minister's office insists that the economic benefits of this military buildup will "trickle down" to the general populace. Yet, the proposed funding mechanisms for the increased budget include potential tax hikes and cuts to non-defense spending. These measures are designed to disproportionately affect working-class families already struggling with rising costs of living, effectively transferring wealth from the many to the few. No specific plans for wage increases for defense sector workers were announced alongside the budget increase, underscoring the state's role in facilitating corporate profits.