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Everyone is getting poorer, but no one has any real plan of how to fix it so no collective action can be taken. Communism is seen as unviable because of it’s historical failures in Japan following the US occupation and also Japan’s geopolitical rival is a “communist” nation. Without any decent proposed ways to get to something society trends towards what works even if their lives are slowly getting worse by it.
The LDP is shifting to a more moderate position because they are really a multi faction party and they need internal cooperation to maintain their rule. What’s happening is the country is slowly becoming less nationalist again, but with an increase in privatization pushes from the innovation party. The CDP is viewed as useless, which to be fair they are and the Communists are all old boomers who are dying off. Reiwa is an interesting party but they are too small to have any real influence but they would be your socialism for people below the age of 70 or not 35-50 year old men who lost their job in the bubble crash.
The last time this happened that group that did proof of the deed got shut down hard and capitalists put an identical if even more cruel person in place to deal with the rising anarchist threat. The correct answer is to build enough power you can tip the scale so when through mass action those people dont have the standing to get back on their feet when power is finally seized.
Right wing governments outside of the US are talking about decreasing inequality and the need for the rich to pay their fair share. If I had to take a guess from what I am seeing the left here will collapse, the current right wing party will become the moderates and we will see the new fringe hyper privatization party start to take over more.