Compensation for damages from the radioactive accident
It's my first article.
I'd like to write short essays regarding economic affairs to practice writing.
Recently, TEPCO's debt is a hot topic in Japan.
TEPCO stands for Tokyo Electric Power Company, which suffered amazing financial loss as compensation for suffering from radioactive accidents caused by the earthquake.
A total of TEPCO's debt is heavy, approximately 10 trillion yen, so that if TEPCO was bankruptcy, Japanese major financial organizations would also suffer huge damages.
But since all of the nuclear power plants in Japan have been promoted by the Japanese government, responsibilities and liabilities of compensation is controversial.
Though many senators and commentators in TV accused TEPCO for ineffective safety systems, I think most of responsibilities belong to the Japanese government.
Because the government decided all of safety standard and the plans to build the nuclear plant in that maritime area. Building of nuclear plants is one of political ways to gain a big subsidies and promote employments, so the senator elected from that area was deeply involved in the plan of the nuclear plant.
Otherwise, the senators also insist the principle of capitalization, which means that shareholders and creditors should responsible for all of the loss of TEPCO. In this meaning, they ordered TEPCO to maximum effort to cut the cost, including employees wages, and in fact, TEPCO cut the employees' fee by 20%.
But I know that in financial crisis, in the early of 21st century, major financial organizations hardly cut the employees' fee with taking huge public money more than 10 trillion yen. I think TEPCO's employees, who were unfortunately hit by the earthquake, are better than the bankers, who caused financial crisis by loose valuation.
And if all of compensation were forced to financial stake holders in this case, many financial organizations would feel a large risk to provide financing into nuclear plant projects in the future.
Therefore, I think much of the debt should be saved by the government.
I'd appreciate if you let me know your ideas about it, and correct my writings.
I'd like to write short essays regarding economic affairs to practice writing.
Recently, TEPCO's debt is a hot topic in Japan.
TEPCO stands for Tokyo Electric Power Company, which suffered amazing financial loss as compensation for suffering from radioactive accidents caused by the earthquake.
A total of TEPCO's debt is heavy, approximately 10 trillion yen, so that if TEPCO was bankruptcy, Japanese major financial organizations would also suffer huge damages.
But since all of the nuclear power plants in Japan have been promoted by the Japanese government, responsibilities and liabilities of compensation is controversial.
Though many senators and commentators in TV accused TEPCO for ineffective safety systems, I think most of responsibilities belong to the Japanese government.
Because the government decided all of safety standard and the plans to build the nuclear plant in that maritime area. Building of nuclear plants is one of political ways to gain a big subsidies and promote employments, so the senator elected from that area was deeply involved in the plan of the nuclear plant.
Otherwise, the senators also insist the principle of capitalization, which means that shareholders and creditors should responsible for all of the loss of TEPCO. In this meaning, they ordered TEPCO to maximum effort to cut the cost, including employees wages, and in fact, TEPCO cut the employees' fee by 20%.
But I know that in financial crisis, in the early of 21st century, major financial organizations hardly cut the employees' fee with taking huge public money more than 10 trillion yen. I think TEPCO's employees, who were unfortunately hit by the earthquake, are better than the bankers, who caused financial crisis by loose valuation.
And if all of compensation were forced to financial stake holders in this case, many financial organizations would feel a large risk to provide financing into nuclear plant projects in the future.
Therefore, I think much of the debt should be saved by the government.
I'd appreciate if you let me know your ideas about it, and correct my writings.
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