WPLL newsletter “Umitsubame” No.1502 July 13, 2025 English version

💁This is the international edition of “Umitsubame” (The Petrel) — the political newsletter of the Workers Party for the Liberation of Labor (Japan). We aim to present a workers’ perspective on global affairs and call for international class solidarity.


✊Overthrow the Liberal Democratic Party and Komeito Party administration, which promotes debt-dependent fiscal expansion and increased military spending!
✊Oppose all forms of discrimination, especially gender discrimination, ethnic discrimination, and wage discrimination!
✊Let's advance our struggle under the banner of “abolishing exploitation” and “liberating labor”!

💠Contents & Summary

🟩Vote-Buying Tactics Mislead the Working Class: 
       What Is at Stake in the Upper House Election?

    In the lead-up to Japan’s Upper House election, political parties are competing with vote-buying tactics like tax cuts and cash handouts. These policies aim not at solving the deepening cost-of-living crisis but rather at manipulating voters. The Liberal Democratic Party (LDP) promotes tax reductions and child allowances to distract the public from inflation and stagnating wages. At the same time, opposition parties like the Japanese Communist Party and Reiwa Shinsengumi (Japanese political party) offer similar "handouts," indicating no structural opposition to capitalist rule. The growing emphasis on “Japanese First (Japanese priority)” policies also acts as a smokescreen for xenophobia. What’s truly at stake is the need for a working-class political movement united in the goal of liberating labor and building socialism.

🟩Militarization in Europe’s Imperialist States —
       NATO Applauds the Aggression of Israel and the U.S.

    In June 2025, Israel and the United States launched airstrikes on Iran’s nuclear facilities—an act of imperialist aggression in disregard of international law. NATO praised the attacks, and member states are moving to expand military spending. Germany plans to increase its military budget to 3.5% of GDP, the UK will purchase F-35A jets, and Japan is strengthening its cooperation with NATO’s defense industry. These actions represent an arms race at the expense of workers’ livelihoods. The working class must respond through international solidarity to overthrow imperialism.

🟩Nippon Steel Eyes a Strategic Opportunity —
      Consolidation Offensive and Intensified Exploitation of Workers Are Unavoidable

    Nippon Steel’s acquisition of the financially troubled U.S. Steel (USS) marks a strategic attempt to expand its global presence despite a saturated global steel market. While presented as a growth strategy, the reality is more about consolidating and restructuring production by scrapping outdated facilities and cutting costs. The article warns that these changes will result in increased labor exploitation and job insecurity. It also emphasizes the need for workers—both in Japan and the U.S.—to resist rationalization that imposes sacrifices on them. Solidarity among workers across borders is seen as essential for class-based resistance.

🟩Windfalls for the Wealthy and Corporations, Widening Inequality — 
       Trump’s “Spending and Tax Cuts Act” Enacted

    Following the Senate, the House of Representatives narrowly passed on July 3 Trump’s key policy bill—the “Spending and Tax Cuts Act”—with 218 votes in favor and 216 against. Contrary to Trump’s self-congratulatory rhetoric calling it “one big beautiful bill” and claiming it marks the beginning of “America’s golden age,” the legislation is forecast to add $3.4 trillion to the national deficit over the next decade. The financial burdens stemming from sweeping tax cuts that benefit corporations and the wealthy will inevitably fall on the shoulders of low-income earners, further exacerbating wealth inequality.

💠Full Article

🟧Vote-Buying Tactics Mislead the Working Class 
      — What Is at Stake in the Upper House Election?

    A survey on living conditions by Japan’s Ministry of Health, Labor and Welfare (2024) revealed that 60% of households said they were "struggling financially," and among households with children, those who answered “in severe hardship” rose sharply to 33.9%, a 5.4-point increase from the previous year — as widely reported by major newspapers on July 5.

Ruling Parties and Opposition Compete Over Handouts or Tax Cuts

    The main cause of this hardship is skyrocketing prices. The same survey (2023) showed that average household income rose by 2.3% to 5.36 million yen, yet more households still reported feeling "severely burdened." In May 2025, consumer prices had risen 3.5% year-on-year, pushing the index to 111.8 (with 2020 as 100). Real wages, reflecting price hikes, have been negative for five consecutive months up to May.

    With rice shortages and rising food prices worsening, 14,409 food items are set for price hikes by October. Sensing growing anger and despair among struggling workers, political parties have crafted election strategies revolving around whether to offer cash handouts or tax cuts.

    In a party leaders’ debate at the end of the Diet session, Ishiba criticized the opposition’s price control proposals as irresponsible — ignoring aging population issues and lacking funding sources. Yet, despite declaring, “We will not provide handouts,” Ishiba announced two days later a ¥20,000 cash giveaway for every citizen. This blatant election ploy sparked 66% public opposition (June 29, Mainichi Shimbun).
The ruling LDP claims that ¥20,000 is justified, based on multiplying ¥270,000 in annual food expenses by a 7% price increase, but fearing it lacked impact, Prime Minister Ishiba also touted dreams like ¥1 million wage increase by 2030, ¥1 quadrillion GDP by 2040, and 50% national income growth.

    The Constitutional Democratic Party called for one year of zero consumption tax on food and a “Meal Support Grant” of ¥20,000 per person, funded by draining special reserves or foreign exchange accounts — reminiscent of the Democratic Party’s “buried treasure” claims.

    The Democratic Party for the People advocated raising the "annual income barrier" to ¥1.78 million, temporarily cutting consumption tax by 5%, and achieving ¥1 quadrillion GDP by 2035, matching LDP promises.

    Ishin proposed a ¥60,000 annual social insurance cut for working generations but plans to cover this with a ¥4 trillion cut in healthcare spending — a deceptive “robbing Peter to pay Paul” scheme disguised as “self-sacrificing reform.”

    The Japanese Communist Party claimed that a 5% consumption tax cut (costing ¥15 trillion) could be funded by “fair burden-sharing” from big business and the wealthy, spreading naïve faith in capitalist goodwill and deceiving both themselves and the workers.

    Reiwa Shinsengumi demanded abolishing the consumption tax, a ¥100,000 cash handout, and seasonal “inflation relief payments,” loudly insisting that Japan’s ¥1,300 trillion debt is no problem if funded by government bonds.

    Sansei Party proposed lowering the national tax burden from 45.8% to 35%, a ¥100,000 child allowance, and phased elimination of consumption tax. The Social Democratic Party called for zero consumption tax on food and a pension system guaranteeing ¥100,000 per month for seniors.
Every party is competing in populist “giveaway politics,” making empty promises like a contest of who can say the most.

Capitalists Will Never Concede Out of Goodwill

    Let us reaffirm the workers’ basic position: Consumption tax is an unfair "additional expropriation" under bourgeois rule, a regressive tax that must be opposed.

    The Communist Party and SDP propose covering revenue shortfalls from tax cuts with heavier taxation on big business and the wealthy — appealing to “fair share” rhetoric. But under capitalist rule, tax laws are designed to protect capitalist interests. The bourgeoisie spares no effort to avoid this “fair share,” using legal loopholes, tax evasion, and even illegal methods. We warn that relying on capitalist goodwill is naive and that neither the Communist nor Social Democrats offer a real fight for workers.

    Without a workers’ movement united in the goal of abolishing capitalist rule and winning the liberation of labor, giveaway politics remains a tool of rulers luring workers into ignorance. History shows that reckless fiscal expansions — like Reiwa’s proposals — inevitably end with workers bearing the cost.

“Japanese First” — A Smokescreen for Xenophobia

"Japanese First" Policy: The so-called "Japanese First" policy promoted by Sanseito goes beyond mere nationalism, representing instead an ethnonationalist ideology that prioritizes Japanese ethnicity over others.

    Let us expose the true nature of the Sansei Party, which polls show as the second choice for proportional representation at 8.1%, behind the LDP (July 6, Kyodo News).

    At its core, the Sansei Party's ideology is “Japanese First” — leading to its “Three Pillars and Nine Policies.” These include “Enrich the Japanese People,” “Protect the Japanese People,” and “Nurture the Japanese People.” The emphasis on “Japanese people” rather than “citizens” mirrors Trump’s “America First” — promoting ethnic nationalism and xenophobia.

    The preamble to the Sansei Party’s “New Japanese Constitution (Draft)” begins with:
"Japan is a land of abundant rice harvests, where the myriad gods and ancestors are enshrined… The Emperor has ruled from ancient times in everlasting reign…”

    This defines Japan as a nation under the Emperor, embodying ultra-nationalist, emperor-centered ideology. The Sansei Party defines citizens as those with “at least one Japanese parent, native Japanese language skills, and a heart that cherishes Japan” — a view eerily close to Nazi racial superiority theories.

    Party leader Kamiya admitted in a German Handelsblatt interview that his ideological peers are U.S. Republican conservatives, Germany’s AfD, France’s National Rally, and Britain’s Reform UK (July 8, Mainichi).

    Workers must push the ruling coalition into a minority — and recognize the xenophobic threat lurking behind “Japan First” rhetoric. We must not allow reactionary parties like the Sansei Party to rise unchecked.

 

🟧Militarization in Europe’s Imperialist States 
      — NATO Applauds the Aggression of Israel and the U.S.

    The sudden attack by Israel on Iran, launched on June 13, and the U.S. bombing of Iranian nuclear facilities on June 22, are unprovoked assaults driven by the self-interest of imperialist powers. NATO has praised this brutality and is itself advancing militarization.

Israeli and U.S. Strikes on Iran

    Israel bombed Iran’s nuclear-related facilities, missile sites, and military facilities, and assassinated high-ranking officials, including the Supreme Commander of the Guard and nuclear scientists. Netanyahu's administration claimed these were “necessary” to remove threats posed by Iran’s missiles and nuclear ambitions.

    Iran responded by launching ballistic missiles at Israeli cities, but the overwhelming power disparity—Israel’s complete air superiority—left Iran heavily damaged.

    On June 20, Trump said halting the attacks would be “difficult” (Asahi, June 22). Then, on June 22, at Israel’s request, the U.S. launched airstrikes on three Iranian nuclear sites.

    Iran condemned the strikes, calling them “a grave violation” of the UN Charter, international law, and the NPT by a permanent member of the Security Council. On June 23, Iran retaliated symbolically with a missile strike on a U.S. base in Qatar, after which a ceasefire was reached. Iran accepted the ceasefire, aiming primarily to preserve its regime.

    The UN Security Council held an emergency meeting on June 23, proposing a ceasefire resolution, which failed due to the U.S. veto. Secretary-General Guterres called the U.S. strike “a dangerous turning point,” but did not directly condemn the U.S. or Israel, exposing the UN’s failure to maintain peace. The IAEA also refrained from officially condemning the attacks.

NATO Pushes for Rearmament

    On June 25, at the NATO summit, neither NATO, the G7, nor Japan criticized the brutal actions of the U.S. and Israel. NATO Secretary-General Rutte even praised the attacks, denying they were illegal under international law.

    The international tolerance of Israel’s nuclear weapons and attacks on Iran, endorsed by the U.S. and European powers, reflects blatant double standards that will further erode workers’ trust globally.

    NATO leaders announced new targets—raising military spending to 5% of GDP by 2035, up from the current 2%.

    This massive budget increase reflects Trump’s influence. The Ukraine crisis has prompted NATO and its member states to enhance military capabilities, anticipating conflict with Russia—deepening the imperialist arms race between NATO and Russia.

    Though Trump seeks to reduce U.S. involvement in NATO, his demands for increased military spending push the alliance forward. While NATO countries support Ukraine through arms supplies, the EU also seeks independent military buildup.

    Germany announced plans to raise military spending to 3.5% of GDP by 2029, up from 2% in 2024. It aims to bolster NATO defense, with 5,000 German troops now stationed in Lithuania. Latvia, Poland, Sweden, and other Baltic countries have revived conscription.

    On June 25, the UK announced plans to purchase 12 F-35A stealth fighters capable of carrying nuclear weapons.

    Japan, as an Asia-Pacific partner, agreed on June 24 to enhance cooperation with NATO’s defense industries. Japan is also moving toward 2% military spending by 2027. The U.S. is pushing Japan to adopt NATO-level targets, including 3.5% excluding support costs.

    NATO cites “the long-term threat from Russia” and “the threat of terrorism,” while Japan emphasizes China’s military buildup and North Korea’s missile programs. However, these expansions sacrifice workers’ livelihoods and heighten international tensions.

Workers Must Defeat Imperialism Through Class Struggle

    The bombing of Iranian nuclear sites by Israel and the U.S. is a reckless act of imperialist brutality. Meanwhile, the EU and Japan are expanding militaries and intensifying conflicts with Russia and China.

    Against these interstate confrontations, workers must unite across borders in international class struggle to overthrow all imperialist states.

🟧Nippon Steel Eyes a Strategic Opportunity —
      Consolidation Offensive and Intensified Exploitation of Workers Are Unavoidable

    Nippon Steel (hereafter NSC) has announced plans to acquire U.S. Steel (USS), a company that was up for sale due to financial struggles. Though both U.S. Presidents Biden and Trump initially opposed the deal, NSC secured Trump’s approval on June 14 and declared it would fully incorporate USS as a subsidiary. However, this process is unlikely to be smooth and will heavily affect workers.

Oversupply of Steel

    Japan’s crude steel production has remained under 100 million tons since 2019, and below 90 million tons since 2022. In 2024, total output was 84 million tons, with NSC producing about half. Yet only 60% of Japan's steel is used domestically, with the rest exported. Japan is burdened with excess production capacity.

    USS, by comparison, produces only 14 million tons—about 30% of NSC’s output—and dropped from 27th to 29th globally between 2022 and 2024. Its outdated facilities have not been upgraded for years, resulting in low productivity and poor competitiveness. For Q1 2024, USS posted a net loss of $116 million, continuing two consecutive quarters in the red. Like Japan, the U.S. is also facing a steel oversupply.

    Meanwhile, China has aggressively expanded its steel industry to meet domestic demand for housing and vehicles. Producing over 1 billion tons of crude steel annually, it now accounts for more than half of global production (1.9 billion tons). The result is global oversupply and intensified price competition.

    In response, NSC has merged with other firms and consolidated its operations, including a 2019 merger with Sumitomo Metal. It has replaced old facilities with high-efficiency ones, reduced the number of blast furnaces from 15 to 10 while maintaining production levels, and improved profit margins—typical behavior of capital pursuing accumulation and profit maximization.

Global Expansion Strategy

    NSC entered China in 1978 and formed a joint venture with Baoshan Iron & Steel. It also manufactured automotive steel sheets for Japanese carmakers in China since 2004. However, facing rising competition from Chinese EV manufacturers and U.S.–China tensions, NSC withdrew from this venture in July 2023.

    Unable to generate profit in China’s market, NSC appears to be betting on the USS acquisition as a new foothold. It has also expanded into India, acquiring the country's 5th-largest steelmaker in 2019 with ArcelorMittal and planning to build blast furnaces there.

    Despite visible global overproduction, NSC is not shrinking but ambitiously expanding, aiming to reclaim a global leadership role through the acquisition of aging USS.

In Reality: Production Consolidation and the Intensified Exploitation of Workers

    NSC’s strategy, though framed as expansion, is essentially about production consolidation—replacing old facilities with new, advanced technologies to concentrate operations and maximize profit margins per ton, especially in high-grade, high-priced products like automotive steel.

    To this end, NSC will spend $14.1 billion to acquire USS stock and an additional $11 billion by 2028 (totaling $25 billion including later investments). Yet it is uncertain whether this massive investment will pay off. Workers will likely face forced relocations, intensification of labor, and even layoffs.

    NSC already operates in 15 countries, extracting surplus value globally. Buying USS is seen as a golden opportunity for further capital accumulation. But if NSC replaces USS’s plants with NSC-level productivity using the same workforce (22,000 employees), production may double—exacerbating oversupply and intensifying U.S. price competition.

    American labor unions, though sometimes militant, are fundamentally bourgeois. Their leaders cannot consistently defend workers’ conditions and are already negotiating “participation in management” with NSC. Like many European unions, they often end up acting as agents of capital—as seen in their support for restarting nuclear plants.

    The form of NSC’s consolidation and rationalization in the U.S. remains uncertain, but workers must prepare for resistance. They should not oppose the scrapping of obsolete equipment but must firmly resist sacrifices imposed on them. Japanese and American NSC workers share the same position, and the conditions are ripe for international class solidarity.
 

🟧Windfalls for the Wealthy and Corporations, Widening Inequality — 
       Trump’s “Spending and Tax Cuts Act” Enacted

    A major feature of the bill is the permanent extension of provisions from the 2017 “Tax Cuts and Jobs Act,” enacted during Trump’s first term. That law slashed the top corporate tax rate from 35% to 21% and provided more significant tax benefits to high-income earners than to low-income ones. The exemption threshold for inheritance and gift taxes was temporarily raised from $5.49 million to $10 million (still taxed at 40%), and this change will be extended.

    The 2017 law also introduced a cap of $10,000 on federal tax deductions for state and local taxes (SALT), which will now be expanded. These measures disproportionately benefit the wealthy and corporations.

    Additional tax breaks promised by Trump during the 2024 campaign include exemptions for tips received by service industry workers (e.g., restaurants and hotels) and overtime pay. However, these are temporary (until 2028) and amount to $31.6 billion and $89.5 billion, respectively—small compared to the $2.1 trillion in individual tax cuts and $1.4 trillion for maintaining the expanded standard deduction. These minor benefits appear more as symbolic gestures aimed at deflecting criticism from low-income voters.

Passing the Burden to the Poor

    While granting large tax breaks to the rich, the law imposes deep spending cuts. Chief among them is the rollback of Medicaid, a public health insurance program for low-income Americans. The new provision mandates employment to qualify for Medicaid, forcing those unemployed to rely on expensive private insurance or become uninsured. It’s estimated that by 2034, this will result in 17 million more uninsured people.

    The uninsured rate among people under 65 is projected to drop from 9.4% in 2024 to 17.2% in 2034 (Asahi Shimbun, July 5). This reform is expected to save $1 trillion in federal spending.

    Other cuts include $500 billion in climate-related spending (e.g., electric vehicles and solar energy) and $100 billion in border security and anti-immigration measures, such as building a border wall and mass deportations.

    Although Trump claimed during the presidential race to be a champion for struggling workers, his actual policy grants vast tax cuts to the rich while shifting the burden onto the working poor, as seen in the Medicaid rollback.

Deepening Contradictions in U.S. Society

    According to the Congressional Budget Office, the law may raise GDP by only 0.1% annually over the next five years, while increasing the deficit by $3.4 trillion over ten years. Trump claims tariff revenues will cover this, but in reality, tariffs raise prices on imports, and U.S. consumers bear the cost.

    The “Spending and Tax Cuts Act” reflects Reagan-era neoliberal “trickle-down” logic: if the rich thrive, so will the poor. This illusion has already been disproven. The outcome will be ever-deepening income inequality and growing social contradictions.

Zenkoku-Shakensha
Zip:179-0074, 
1-11-12-409 Kasuga-chou
Nerima-ku Tokyo Japan
tel/fax +81-3 (6795) 2822

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労働の解放をめざす労働者党 
Workers Party 
aiming for Liberation of Labor

https://wpll-j.org/