Tokuzo Fukuda on Welfare Policy

Abstract

Tokuzo Fukuda (1874-1930), as an eminent economist, was active brilliantly in the early part of this century. He was also a member of the Japan Academy since 1922. The subject matter of his lifework was to research the welfare policy in economic process as a way to combat socialism. He raised objections against the collapse of capitalism in Marxian theory on one hand, and against the idea of laissez faire in classical economics on the other hand.Fifty years or so after his death, Fukuda's work has began to be off people's mind. In 1980, I compiled a book under the title“KOSEI KEIZAI”(Welfare Economy), selecting Fukuda's five essays on welfare problems. Here I will give an outline of topics treated in these essays.(1) Labour-the higher living standard, the higher productivity.(2) Real wages-to be defined not as rates but as quality of life and, therefore, not through price-struggle but through welfare-struggle.(3) Economic revival after the great earthquake in 1923-emphasis on rebuilding for enlargement, not on restoration of status quo.(4) Reproduction process-distinction of three phases: maintenance, necessary surplus and unnecessary surplus (waste).(5) Unemployment-inevitability of its coming out and relief by means of restrictions of free-contracts.Fukuda attempted to get over Pigovian Welfare Economics and came to a radical reform of capitalist society. Hobson, especially his Industrial System, was highly praised by Fukuda. In Fukuda's thinking, I would like to take notice of the conspicuous concept“welfare-struggle”in particular. According to his opinion, social welfare is brought about by way of struggles among collective bodies, such as trade union, managers' association and others (including public bodies) in our democratic society. Fukuda's teaching, I believe, is alive more at present than in his life-time.