Confronting long-lasting shocks such as globalization and population aging by means of the same “improvement” as before, however, may delay responses to significant changes. Reform cannot proceed without public consensus. Bringing about innovation requires firms’ willingness to take on challenges as well as the transfer and reallocation of necessary resources. Frictions may well be experienced in the process.
While this is not necessarily an issue with one indisputable solution, if environmental change is long-lasting, I find it extremely important for society as a whole to accept such changes and adopt a view that encourages any and all efforts to take on new challenges, in order to successfully carry out reforms toward strengthening growth potential.