Is the Nikkei Picking a Fight with the Government? Even Business Newspapers Are Joining the Political Battle

There is nothing unusual about a newspaper clashing with the government.

Liberal media outlets such as the Asahi Shimbun criticize governments led by Japan’s Liberal Democratic Party, and the government responds. This has become a familiar scene in Japanese political news.

Recently, however, something rather interesting has been happening.

The Nikkei, of all newspapers, is reportedly locked in a fierce confrontation with the government.

The Nikkei is generally associated with sober reporting on stock prices, exchange rates, and corporate earnings. Rather than brandishing a political ideology, it seems like a newspaper that spends its time studying economic figures.

And now that same Nikkei is confronting the government head-on.

It feels like watching the normally calm head of accounting suddenly begin arguing with the company president.

Fiscal Discipline or Expansionary Fiscal Policy?

The conflict appears to stem from differing views of economic policy.

The Nikkei has traditionally emphasized fiscal discipline. Its position is that continually issuing more government bonds will eventually lead to higher interest rates and deteriorating public finances.

The current administration, meanwhile, advocates expansionary fiscal policy and seeks to grow the economy through government spending and investment.

Both sides have a logical case.

I understand the concern that continually increasing debt will eventually cause problems. I also understand the argument that the government should not tighten its purse strings when the economy is weak.

Economists themselves disagree on the issue, so there is nothing strange about a newspaper and the government taking opposing positions.

Recently, however, there have been moments when the dispute seems to have moved beyond policy and become emotional.

The Government Was Furious over the G20 Report

One example was a Nikkei report concerning the G20.

The Nikkei published an article saying that, during preliminary talks related to the G20, China had sharply criticized rising interest rates in G7 countries, putting Japan, the United States, and Europe on the defensive.

The government strongly denied that this had happened.

Its response was that the talks described in the article had not taken place at all.

At that point, this was no longer merely a difference of opinion over economic policy.

The newspaper said it was a fact, while the government said it was not.

Which one was correct?

The Nikkei maintained that its reporting was based on its own newsgathering, but without disclosure of its sources, outsiders had little basis for judging.

Before anyone could debate which economic policy was correct, the argument had become a dispute over whether the meeting itself had even occurred. It was becoming quite a complicated matter.

What Is the Nikkei Fighting?

What makes the situation even more interesting is the question of why the Nikkei is confronting the administration so aggressively.

One possibility is that it is genuinely worried about Japan’s public finances.

If expansionary fiscal policy undermines confidence in Japanese government bonds and causes interest rates and prices to rise, the consequences for Japan’s economy could be severe.

It would be natural for a business newspaper to sound the alarm.

But there is another, slightly more cynical interpretation.

If expansionary fiscal policy actually caused Japan’s economy to grow, what would that mean for the Nikkei, which has spent years emphasizing the importance of fiscal discipline?

Of course, economic growth and fiscal discipline are not necessarily in conflict.

Even so, it would not be surprising if some people were unhappy to see a policy diametrically opposed to what they had long advocated succeed.

Rumors even circulated that someone inside the Nikkei had made comments about seeking to bring down the government. The Nikkei denied this, so it cannot be treated as fact.

Still, the very existence of such rumors suggests that the Nikkei is beginning to be seen not merely as a reporter of economic news, but as a participant in a political conflict.

Business Newspapers Have Views of Their Own Too

When you think about it, there is nothing strange about a newspaper holding a particular economic philosophy.

The question is what it does when that philosophy conflicts with reality.

If the government’s policy fails, the newspaper should criticize it without hesitation.

But if the policy succeeds, will it be able to acknowledge that honestly?

Conversely, the government should not treat every unfavorable report as a hostile act.

Ultimately, who was right will not be determined by a newspaper editorial or a politician’s speech.

It will be determined by the actual economic results.

The problem is that the effects of economic policy take years to emerge.

By then, the government may have changed, and the newspaper’s editorial position may have changed as well.

Politicians will say, “Our policy was correct,” while the newspaper will say, “Our warnings were correct.”

Whatever happens, I only hope the public is not left as the only party expected to reflect on its mistakes.