Question

On an average, real GDP per capita has grown at a much slower rate in USA than in Japan after the second world war. This is because of much lower levels of GDP per capita in USA than in Japan around the second world war time.

Is this statement true or false or uncertain and explain it in 100 words.

Answer 1

Answer - TRUE

STATE OF JAPAN AND USA AFTER SECOND WORLD :

With the defeat of Japan in World War II, USA led the Allies in the occupation and rehabilitation of the Japanese nation. In 1945-1952 ,USA forces helped with military, political, economic and social reforms. Herein, AMERICA GAVE FULL FREEDOM TO JAPANESE ECONOMY, however ARTICLE 9 was applicable was obviously an American mandate and reaction to the war, which goes as "Aspiring sincerely to an international peace based on justice and order, the Japanese people forever renounce war as a sovereign right of the nation and the threat or use of force as a mean of settling international disputes and to full fill it the land, sea, Air Forces will never be maintained .The right of belligerence of the state will not be recognized "

GDP GROWTH OF JAPAN MORE THAN THAT OF USA:

• in 1990 USA dollar purchasing power equivalents, Japan's per capita GDP in 1945 in the year of surrender in WW2 ,was $1346 in 1990 US dollar - hardly 11% of the US figure for same year and merely 47% of the per capita income Japan itself achieved in 1940 (year before entering in WW2)
• In the second half of the nineteenth century, Japan in its nation adopted SWEEPING POLICY : aiming to enrich the nation by strengtheningthe military. Further the growth in Japan from 1870 - 1940 depicts it's success, wherein Japan's GDP grew from 30% of USA to 41% of USA on the eve of pacific warr
• POST WAR MIRACLE : during the post war period the recovery period(1945-56) per capita GDP rose from at an annual rate 7.1% ,recovery was followed by era of rapid growth.
• In 1973, Japanese per capita GDP was 69% of USA. That was the prior year of so called rapid growth era, furthermore Japanese economy had a steady growth for almost two or more decades. By 1991, the prior year "bubble economy" - Japan's per capita GDP was 85% that of USA. despite the hit from WW2 , the speed of catching with west, was more than a century earlier, was basically completed
• Economical reforms to boost the JAPANESE ECONOMY namely were - ZIABATSU DISSOLOUTION - prevention of economic power and concentration, FAIR MARKET RULES - anti trust laws, security exchange laws, AGRARIAN LAWS - abolition of tenant system and also pushes independent farmers, LABOUR MARKET REFORMS - legaisation of labor movement and also to make labor unions
• However in US, capitalist pattern was followed, government did not had much role to play, but in Japan government leaded the people making it to grow in welfare terms

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