Personally, I think in principal humanities, have a purpose, and a very important purpose. That said, at least as actually practiced in the west they haven't been serving that purpose since at least the dumping of the Western Canon in the 1980s. I'm not sure if Japan has similar problems, but if it does this is a reasonable move.
As for social "science", I think this is part of the problem. Namely, attempting to apply the scientific method in areas where there isn't enough scientific evidence to draw any conclusions. Thus, the fields end up getting filled with non-replicable BS backed by dubious statistics.
Principal humanities, such as literature and art, certainly serve a very important purpose. However, is there a reason to think that withdrawing government funding or even abolishing the faculties altogether would have hurt these fields? Most writers and artists I happen to appreciate did not learn their profession in college.
Perhaps this is an ideal solution. Humanities and social sciences are heavily politicized, so it makes sense to keep the government out of them and leave the teaching to private universities.
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