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1940 Japanese Economy

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Japanese economy was structured solely based on meeting military demand. The economy’s strength was strained by the strict economic controls and the shortages of raw materials while industries and livelihood were sacrificed so the economy could meet the military demand. The wartime-controlled economy was unavoidable because of the government’s necessity in ensuring raw materials for chemical industries, production of weaponry, and the raising of funds for huge military spending. Japan depended on imports for many materials like nickel, cobalt, raw cotton, wool, and oil, but was self-sufficient in producing coal, iron ore, and salt. Imports for consumer production, like wool and raw cotton, were cut back. In 1940, to counter act the cut back …show more content…

The military planned to invade places like Singapore to obtain more natural resources. In September of 1940, Japan officially signed a treaty with Germany and Italy, which caused the United States to restrict their exports to Japan in hopes of weakening their economy. Japan’s government implemented a New Economic Order, which called for a shift in firms to a production basis instead of the normal profit basis; to appoint government officials as the new managers; to have industries increase production based on government orders; and to be able to organize cartels to enforce government controls like quotas. Business owners opposed this plan, claiming it was “communist”. In early 1941, the United States banned petroleum exports to Japan, thus launching Japan into war in Southeast Asia for raw materials. Expectations of being able to continue production levels while mobilizing many ships, tankers, and repair vessels was optimistic, but soon, losses continuously exceeded expectations in 1942. In 1943, production of steel and chemicals fell because of the focused production of aircrafts, ships, and

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