Japan 's Post War Economic Miracle

With the change of government in Japan, economic change soon followed. Banks were founded to invest in capital, railways and steam boats were developed, restrictions on trade such as tariffs and guilds were removed, and land was re-distributed. These reforms helped spur the Industrial

The Economic Effect on Japan during Post World War II Japan’s economy was greatly affected by the atomic bombs dropped on both Hiroshima and Nagasaki. Japan’s economic recovery as a result of this incident transformed Japan’s economic growth which has become known as the “Economic Miracle.” The bombs caused Japan to reconstruct many more facilities in which the economy moved forward. The Economic Planning Agency, which used to be known as the Economic Stabilization Board, helped Japan to become one of the leading economic nations. The United States also contributed to much of Japan’s recovery by occuping it from 1945-1951.

Although Japan changed in many ways from 1853 to 1941, there were also many factors that remained the same throughout the history of Japan. One such continuity was the maintained existence of a figurehead ruler controlled by other political authorities. The feudalistic emperor of Japan was the supposed “highest, most powerful authority” in the land, but was actually controlled by the military leaders- the shogun. Similarly, the militaristic emperor of Japan decades later continued to remain a figurehead ruler controlled by military and government officials. In addition, Japan continued to remain reliant on exports in order to maintain its economy. As a result of Japan’s small geographical size, the island nation had few natural resources and was forced to rely on exports to survive economically. The nation also grew increasingly reliant on other nations to provide materials and supplies that it could not provide for itself. This complete reliance on other nations was seen illustrated when the Japanese military was provoked to attacking another superpower- the United States, in response to the 1940 United States embargo

The defeat of Japan and Germany positively stimulated the American economy. The United States was concerned of how fast the Japan economy was growing,

Between the late nineteenth century and early twentieth century, Japan’s economy developed remarkably. China had also developed economically; however, not near as much as Japan. The Japanese government industrialized greatly and encouraged western influence, but the Chinese government did the opposite.

The Great Depression, which occurred in 1929, devastated the economy of many counties worldwide, including Japan. Thus, many sought for imperialism as the answer, such as the Western power and Japan. Japan targeted China, planning on taking advantage of the turmoil that was taking place inside the country, greatly devastating the country by military power. Watching closely over the feud between the Chinese Nationalists and Communists, Japan waited for the perfect opportunity. (Beck et. alt. 481)

This portion of the book focuses on how the war was useful in making Japan an economic power. Dower begins by explaining that postwar Japan’s success can be

1. Outline very briefly the main factors that led to the bubble economy of the 1980s and

The Tokugawa Shogunate era was a period of significant growth and change in Japanese society. There were two major catalysts that led to this development in Japan. Firstly, economic growth occurred due to a transformation within the agricultural sector. Merchant driven trade and market activity saw drastic changes in the work of the peasants. They moved from their agricultural land to the major cities. Trade increase led to the the creation of an effective and reliable transportation systems that allowed for Western and Eastern parts of Japan to trade. Improvements to the road systems and shipping networks were expanded under Tokugawa's rule. The influx of the population of Japanese in the city served as a major impetus for growth and change because the old notions of a static, agrarian-based economy were substituted for a well structured

Japan’s unemployment rate of about 4% opposed to the U.S. unemployment rate of close to 10%. Even the financial debt to GDP ration is an advantage, and debt in the private sector has not increased unlike the U.S. and European countries, (Time, 2009). In addition, since Japan is a huge exporter and with the U.S. demand going downward, the international balances and growth declined especially as the dollar value dropped and the yen surged. •

A world-class manufacturing power was lead into a deep slump. Japan has traditionally possessed a remarkably high savings rate and a moderately low consumption rate. Throughout the previous two decades of recovery and high-speed growth, this ‘savings surplus’ provided greatly needed capital to private industry in the form of bank loans. This money was used to build and expand Japan’s industrial infrastructure power. However, during the 1990’s the ‘savings surplus’, once the essential fuel for high-speed development became a stern obstruction, leading to a severe collapse in demand and causing a heavy drag on Japan’s economic recovery.

In 1945, Japan was devastated and lost a quarter of the national wealth after suffering a defect in the second world war. A majority of the commercial buildings and accommodation had been demolished, and massive machinery and equipment formerly used in production for the civil market were out of service to provide metal for military supplies (Miyazaki 1967). Despite the trash and ruins had left over in Japan, Japan was able to rebuilding its infrastructure and reconstruct their economy. It is revealed that the Japanese economy was on its way to recovery, which received a rapid development since the war, and the reconstruction of Japan had spent less than forty years to become the world’s second largest economy in the 1980s. This essay will explore the three factors account for the economic growth of post-war Japan: the financial assistance from the United States, the external environment, and the effective policy of Japanese government.

Globalisation has had a profound impact on the Japanese economy influencing levels of international trade, business operations, financial flows, government policy, labour markets and even environment. This movement has been driven primarily by numerous TNCs, trade liberalization, and the deregulation of the financial system, and numerous strategies adopted by the Government and Economy, resulting in the creation of a 'new' Japan.

Japan ranks as the third largest economy in the world as of 2010. The GDP at current prices in US dollars in Japan was reported at 5068.06 billion in 2009, according to the International Monetary Fund (IMF). Japan’s resurgence after World War II has however reached an inflection point in yearly 1989 after the burst of Japan’s asset price and real estate bubbles. As can be seen from the graph below, Japan’s GDP has hovered around the same level through more than 20 years of economic stagnation. The GDP’s slow growth has been exacerbated by the world financial crisis of 2008. A major landmark of Japan’s stagnation has been the BOJ’s fight against deflation.

While Japan’s economy may be contracting, the unemployment rate has lowered to 3.1 percent in October which came down from the 3.4 percent that is was at in January of 2015. The lowest value since July of 1995, but as the number of unemployment has declined sharply and employment has rose. The average of unemployment was 2.7 which was set in 1953. The unemployment rate for Japan is reported by the Minister of Internal Affairs and Communication.