History of Japan
Decade - 1950s
Decade - 1940s

What was Japan's economic situation after World War 2?

Top Answer
User Avatar
Wiki User
Answered 2015-07-17 17:29:11

Well, Japan's economic experiences could have been better. They were at the low of their lows. But after the war, the U.S. helped rebuild everything, Japan became one of the most economic empires of the world. After this great devistation, Japan was changed and soon became one of the wealthiest country's there is.

At the end of World War II, Japan's economy was in ruins. The major urban and industrial areas had been almost completely destroyed by the U.S. Army Air Force incendiary raids which had commenced in the summer of 1944. The transportation network was destroyed, the merchant marine navy had ceased to exist, the agricultural sector was unable to meet even the requirements of basic subsistence and food stocks were non-existant. It was only due to the reluctant and belated intervention of the U.S. Government (many members of the Congress and the Truman administration were opposed to feeding the Japanese) that wide spread starvation of the Japanese populace was averted in 1946.

It is a wide spread belief that the United States "rebuilt" Japan's economy after World War II. This is not true. More countries were involved in the rebuilding. Following the surrender, Japan was occupied by the allied powers, chiefly the United States with the lesser participation of the British, until 1952 when the peace treaty was signed. One of the conditions of the surrender was that Japan make war reparations. Both the United States and the Soviet Union seized capital assets, cash, and property in both Japan proper and the the former Japanese occupied areas of Manchuria as partial payment toward these reparations. This had the effect of further crippling what remained of Japan's industry and economy. The United States cancelled further payments in 1954 but the payment of reparations to other countries continued long after. Some sources assert that Japanese war reparations exceeded by a large margin the amount of foreign aid received by Japan which in any case was chiefly in the form of bank loans.

Nor was Japan the recipient of an aid program such as the Marshall Plan which attempted to rebuild Europe. Despite massive infusions of Marshall Plan dollars and assistance to Great Britain and France, neither country ever regained its pre-war economic power. Japan's economic miracle was largely due, not to any overt action of the United States, but to the industriousness of its people. Of course there were other contributing factors as well, such as the 100 per cent literacy rate, the high rate of personal saving, and generous government subsidies to key industries and emerging technologies.

Perhaps the most important contribution the Occupation made to Japanese economic recovery was in the introduction and nurturing of democratic reforms. Capitalism works best in a free society.

If anyone is going to answer on here, please cite sources for your comments. The person who wrote here about the U.S. NOT being the major source of rebuilding is obviously not well-informed or has some other agenda. QUOTE sources...this site wants "answers" not half-baked opinions. BTW, the BCOF was responsible for the demilitarizing of Japan's war industries. The U.S. put billions of dollars into reconstruction.

User Avatar

Your Answer

Still Have Questions?

Related Questions

What was the UK's military and economic situation at the end of World War 2?

The UK was nearly bankrupt at the end of World War 2

How did World War II affect American's economic situation?

The build up for World War II helped America get out of the Great Depression.

What was Japan's Achilles heel during World War 2?

What was japans achillies heel in world war two

How was Japans economy after World War 2?

Japan's economy after World War II was extremely poor. We had to support them.

What were Japans motives in World War 2?

Domination of the East and the Pacific.

Why was hirohito important to world war 2?

because he was japans emperor

Who was japans leader in World War 1?

Hirohito was Emperor from 1926 to 1989.

After the united states declared war the nations economic siuation?

After the USA declared war the nation's economic situation improved.

What were japans attitudes during World War 2?

The same as Germany's; they were destined to rule.

Who was japans president in world war 2?

Emperor Hirohito and Prime Minister Tojo

What was Japans and US relations during World War 2?

They weren't freinds i can tell you that......

What were Japan's actions in World War 2?

See the related links below for a comprehensive explanation about Japans actions in World War 2.

Which situation was a major result of World War 1?

the treaty of versailles contained provisions that contributed to the political and economic problems of europe.

What was one of japans primary goals during world war 1?

to expand its influence throughout asia.

How did World War 1 change the balance of economic power in the world?

World War 1 change economic power the right way

What were the social political and economic causes of World War 2?

what were the social, political, and economic causes of world war 2

Still have questions?

Trending Questions
Best foods for weight loss? Asked By Wiki User
How to lose belly fat? Asked By Wiki User
Previously Viewed
Unanswered Questions
Saan nagmula ang gitara? Asked By Wiki User
Uri ng tekstong nareysyon? Asked By Wiki User
Can you get Takis at 7 eleven? Asked By Wiki User