04 Japan's Economic Miracle
During this unit we will study the following content:
- America's influence on Japan'a post-war recovery.
- Japan's place during the Cold War.
- The diversification of Japan's economy to becoming the second largest in the world.
- Cartoon source analysis.
- Evaluating cause and effect.
- Extended writing.
“Economic miracle” is the term given to describe the Japanese economy following WWII. This “miracle” occurred due to several factors including, but not limited to, investment from the United States and direct intervention by the Japanese government. Students will examine several documents to determine the causes and effects of the post WWII economic turnaround. This will be followed by an examination of economic growth in Japan through the 1980s.
Post-war Japan |
Japan under American OccupationThe following is a History Channel Documentary that we will be referring too throughout the unit.
For lesson 1 of this unit watch from 6.00 to 15.00 minutes. |
How did American Occupation change Japan?
Cartoon Source Analysis
The Impact of the Korean War on Japan's Economy
Japan’s reconstruction of its nation to become the great economic power in less than forty years after the defeat of World War II has been a somewhat remarkable exception in modern economic history. Before the defeat in 1945, all of Japan’s strength was spent on gaining power through war and, as a result, it led to destruction.
A high proportion of the industrial and commercial buildings together with the equipment they contained had been destroyed, and much plant and machinery formerly used in production for the civilian market had been scrapped to provide metal for making weapons. Due to this concentration of power used in war, the surviving Japanese people from the war were left with chaos, starvation, and unemployment when returning to their country. With almost a quarter of its nation’s housing accommodation destroyed, the Allied Occupation Forces came to rescue the devastated country. More than 60 cities in Japan were bombed, with all of them being 50 to 90% destroyed.
Furthermore, an estimated 3.1 million Japanese people died during WW2. Agriculture was not as badly damaged as you would expect. This was because farms were generally small and spread apart making them difficult to bomb. However, the damage to transport links meant that food was unable to make its way to the cities. Although Japan was left with wastes and ruins of factories and infrastructures, Japan was able to reconstruct its economy from a fresh start by building on its prewar economic experience and gaining knowledge from the rest of the world.
Saviour for Japan came in the form of the Korean War. Prime Minister Yoshida Shigeru described the Korean War as 'a gift from the gods' for the Japanese economy. The Japanese economy was stimulated by increased demand from the American military for whom it was easier and quicker than having supplies shipped all the way from the United States to Korea. Much of the Japanese infrastructure was destroyed during WW2, factories and transport links were rebuilt to Americans fighting in Korea. Over $3.5 billion was spent by the U.S on Japanese companies, and the zaibatsu went from being distrusted to being encouraged. Japanese manufacturing grew by 50% between March 1950 and 1951, and by 1952, pre-war standards of living were reached and output was twice the level of 1949.
A high proportion of the industrial and commercial buildings together with the equipment they contained had been destroyed, and much plant and machinery formerly used in production for the civilian market had been scrapped to provide metal for making weapons. Due to this concentration of power used in war, the surviving Japanese people from the war were left with chaos, starvation, and unemployment when returning to their country. With almost a quarter of its nation’s housing accommodation destroyed, the Allied Occupation Forces came to rescue the devastated country. More than 60 cities in Japan were bombed, with all of them being 50 to 90% destroyed.
Furthermore, an estimated 3.1 million Japanese people died during WW2. Agriculture was not as badly damaged as you would expect. This was because farms were generally small and spread apart making them difficult to bomb. However, the damage to transport links meant that food was unable to make its way to the cities. Although Japan was left with wastes and ruins of factories and infrastructures, Japan was able to reconstruct its economy from a fresh start by building on its prewar economic experience and gaining knowledge from the rest of the world.
Saviour for Japan came in the form of the Korean War. Prime Minister Yoshida Shigeru described the Korean War as 'a gift from the gods' for the Japanese economy. The Japanese economy was stimulated by increased demand from the American military for whom it was easier and quicker than having supplies shipped all the way from the United States to Korea. Much of the Japanese infrastructure was destroyed during WW2, factories and transport links were rebuilt to Americans fighting in Korea. Over $3.5 billion was spent by the U.S on Japanese companies, and the zaibatsu went from being distrusted to being encouraged. Japanese manufacturing grew by 50% between March 1950 and 1951, and by 1952, pre-war standards of living were reached and output was twice the level of 1949.
Life during the years of prosperity - 1953-1989
Japan's rapid economic growth in the second half of the twentieth century led to huge changes. We will look how this era of economic prosperity affected the following areas of Japanese life:
- Women
- The Salaryman
- Education
- The Envionment
The Environment
By the 1970's many Japanese were becoming concerned about the effects that economic growth was having in the environment. Smog covered congested cities were literally choking the people that lived in them. Once pristine bays and harbours had been polluted by industrial waste. The growing population exacerbated the problem as more housing, factories and jobs were needed to take care of these people. Dealing with household and industrial waste become a huge problem for the country.
Japan had become a very crowded country.
By the 1970's many Japanese were becoming concerned about the effects that economic growth was having in the environment. Smog covered congested cities were literally choking the people that lived in them. Once pristine bays and harbours had been polluted by industrial waste. The growing population exacerbated the problem as more housing, factories and jobs were needed to take care of these people. Dealing with household and industrial waste become a huge problem for the country.
Japan had become a very crowded country.
Japan's Lessons on the Economy and the Environment
Japan is recognized as economic leader and technology nowadays. However in the course of economic growth after World War II, Japan had earned reputation of heavily polluted country. Japan suffered from all kinds of pollution because of the heavy industrialization at the expense of environment and people's health; Minamata disease, Yokkaichi asthma, Itai Itai disease are just a few well known examples. This program looks back how Japan has suffered from the pollution, then concur the problem without damaging the economic growth. It analyzes what cost more for companies, pursuing profit without care for the environment, or investing in the environmental measure at the very first stage.
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Are we about so say 'goodbye' to the salaryman?
A typical salaryman arrives in the office at 9am and ends his working day late, often around midnight. He does not dare leave the office before his supervisor—and managers stay late to show their loyalty. Is any work going on? Rarely. But long hours remain the norm.
A few times a week, at around midnight, the boss may assemble the team and go out on the town. Then the “working” day does not end until around 2am, in a bar; the journey home takes another hour or two. Drinking deep into the night was long considered part of the job; companies set aside a budget for it. But the funds were slashed during the 1990’s and have not been replenished. Now employees have to pay the costs themselves. Late-night nomi-kai (drinking parties) are becoming less common these days: more and more younger colleagues treat the hours after work as their own, not the company's.
A salaryman had stability. Employment was more or less guaranteed until retirement. Wages were low at first but increased with age, followed by a generous pension. Training was provided. A salaryman's income was matched to his household's expenses. So when he was in his 30s, the family did not require much. When he reached 50 and the kids left for university, his salary was reflective with his increased bills. And when he retired, he could count on being taken care of by the company. In return, the salaryman devoted his life to the firm.
The change in the economy in the 1990s, forced companies to cut back employees' benefits dramatically. Increasingly, many firms hired new staff on short-term or part-time contracts rather than treating them as members of the corporate family. This has resulted in more workers switching jobs, and since they are not a full-time company employee they don’t feel the need to stay at work late into the night.
The typical amount of paid holiday in Japan is ten days, but salarymen rarely take all of them. Some don’t want to create an image of not being devoted to the company and others don’t want to burden others with their work while they are away.
But, much of this is changing, as younger salarymen push back. Preferring to balance company time and personal time, more are taking their holidays.
More and more women have been entering the workforce, but opportunities for women to advance to the executive level remain limited. Changes in labour law and attitudes towards ‘the place’ of women mean that there are more women in positions of responsibility, but only 5.1% of executive positions are filled by women. Today 70% of Japanese women who have a baby quit their job, this is compared with 40% in the United States.
The prospect of lifetime employment for women remains one that is largely unreasonable to day. Women are often given menial part-time jobs, like office ladies who are forced to do repetitive task.
Part of this article was adapted from the economist
A few times a week, at around midnight, the boss may assemble the team and go out on the town. Then the “working” day does not end until around 2am, in a bar; the journey home takes another hour or two. Drinking deep into the night was long considered part of the job; companies set aside a budget for it. But the funds were slashed during the 1990’s and have not been replenished. Now employees have to pay the costs themselves. Late-night nomi-kai (drinking parties) are becoming less common these days: more and more younger colleagues treat the hours after work as their own, not the company's.
A salaryman had stability. Employment was more or less guaranteed until retirement. Wages were low at first but increased with age, followed by a generous pension. Training was provided. A salaryman's income was matched to his household's expenses. So when he was in his 30s, the family did not require much. When he reached 50 and the kids left for university, his salary was reflective with his increased bills. And when he retired, he could count on being taken care of by the company. In return, the salaryman devoted his life to the firm.
The change in the economy in the 1990s, forced companies to cut back employees' benefits dramatically. Increasingly, many firms hired new staff on short-term or part-time contracts rather than treating them as members of the corporate family. This has resulted in more workers switching jobs, and since they are not a full-time company employee they don’t feel the need to stay at work late into the night.
The typical amount of paid holiday in Japan is ten days, but salarymen rarely take all of them. Some don’t want to create an image of not being devoted to the company and others don’t want to burden others with their work while they are away.
But, much of this is changing, as younger salarymen push back. Preferring to balance company time and personal time, more are taking their holidays.
More and more women have been entering the workforce, but opportunities for women to advance to the executive level remain limited. Changes in labour law and attitudes towards ‘the place’ of women mean that there are more women in positions of responsibility, but only 5.1% of executive positions are filled by women. Today 70% of Japanese women who have a baby quit their job, this is compared with 40% in the United States.
The prospect of lifetime employment for women remains one that is largely unreasonable to day. Women are often given menial part-time jobs, like office ladies who are forced to do repetitive task.
Part of this article was adapted from the economist