The Japanese economy urgently requires action in two different areas. Deregulation is the most effective way to accomplish these aims and overcome these problems. If deregulatory measures are not pushed forward strenuously, the gap between Japan's purchasing power and market rates will increase further, leading inevitably to further appreciation of the yen and weakening at the nation's industrial core. These negative factors would probably lead in turn to further job losses. There is a strong risk that these adverse developments would bring on a general decline, with Japan's businesses falling behind in the world's expanding marketplace, a contracted equilibrium, lower living standards, and less economic activity.
Deregulation is the only way to prevent such a situation.
Economic Benefits of Deregulation Deregulatory measures would benefit companies and consumers over the medium to long term. New business opportunities would open up to private enterprise, and companies would be able to strengthen their corporate structure by raising their productivity. Consumers would profit from a reduction in the disparity between prices in Japan and those overseas. Over the short term, however, certain problems could emerge. Increasingly severe competition could force companies to adjust, with weaker ones failing.