Current location:politics >>
VOX POPULI: Leadership skills of the past are missing in the politics of today
politics59579People have gathered around
IntroductionU.S. economist Joseph Dodge (1890-1964) arrived in occupied Japan in 1949 as the financial adviser t ...
U.S. economist Joseph Dodge (1890-1964) arrived in occupied Japan in 1949 as the financial adviser to the Supreme Commander for the Allied Powers.
Tasked with implementing postwar economic stabilization programs, which came to be known as the Dodge Line, he stated during a news conference on March 7 of 75 years ago that Japan’s economy had been standing on stilts.
Noting that the pair of stilts consisted of U.S. aid and Japanese government subsidies, Dodge called for a super-balanced budget policy.
In the immediate postwar era, Japan was supported by massive amounts of U.S. aid that far exceeded its own annual budget.
And Japanese government subsidies were used to pay the difference generated by export import controls.
Dodge insisted that the only way to curb Japan’s hyperinflation was to lop off those “stilts.”
This seriously alarmed the then-Democratic Liberal Party (Minshu Jiyu-to) Cabinet of Prime Minister Shigeru Yoshida (1878-1967), who had just won the general election of January 1949 by a landslide after pledging massive tax cuts.
Implementing an austerity policy would constitute an outright breach of the party’s election pledge.
His finance minister, Hayato Ikeda (1899-1965), was in a bind.
He held repeated negotiations with Dodge, hoping, at least, to carry out partial tax cuts.
But the budget outlook could not have been more different from what the party had pledged, and intraparty dissatisfaction erupted.
At one point, Ikeda was said to have been prepared to step down.
Ultimately, Yoshida basically “shut everyone up and got the budget approved,” recalled former Prime Minister Kiichi Miyazawa (1919-2007) in his memoir.
Miyazawa was Ikeda’s policy aide at the time.
The drastic budget-balancing “remedy” served to bring the nation’s hyperinflation under control, but it also caused severe side effects.
A great number of small and midsize enterprises went belly-up, and many workers were let go around the nation in what came to be called the “Dodge recession.”
In July 1950, the stock average plummeted to 85.25, the lowest level ever.
And on March 4 this year, the Nikkei stock average topped 40,000 for the first time.
The nation’s “stilts” economy is a thing of a long-past era, but I feel uneasy.
Perhaps that’s because I don’t see any politician today agonizing over the weight of their election pledge or asserting leadership to forge party unity.
--The Asahi Shimbun, March 5
* *
*Vox Populi, Vox Dei is a popular daily column that takes up a wide range of topics, including culture, arts and social trends and developments. Written by veteran Asahi Shimbun writers, the column provides useful perspectives on and insights into contemporary Japan and its culture.
Tags:
Reprint:Friends are welcome to share on the Internet, but please indicate the source of the article when reprinting it.“Culture Chronicle news portal”。http://ireland.highlanderdistrict.org/news-38b099961.html
Related articles
Election 2024: Biden and Trump bypassed the Commission on Presidential Debates
politicsPHOENIX (AP) — The nonpartisan Commission on Presidential Debates, which has planned presidential fa ...
【politics】
Read moreZhang Weili Defends UFC Strawweight Title Against Brazil's Amanda Lemos
politicsContact Us HomeNewsHighlightACWF NewsSocietyWom ...
【politics】
Read moreBiden administration agrees to provide $6.4 billion to Samsung for making computer chips in Texas
politicsWASHINGTON (AP) — The Biden administration has reached an agreement to provide up to $6.4 billion in ...
【politics】
Read more
Popular articles
- Shooting injures 2 at Missouri high school graduation ceremony
- China's Chen, Quan Finish 1
- All England Open: Zheng/Huang retain mixed doubles title
- Renters now pay an extra £5,993 a year in rent and energy bills compared to a decade ago
- Ohio judge to rule Monday on whether the state’s abortion ban stands
- Enjoying Life near Beijing Central Axis
Latest articles
Rangers are undefeated at .500 to keep World Series champs from a losing record with Bochy
Feature: China's Post
Coffee Grown by Women of Wa Ethnic Group in SW China's Yunnan Sent as a Gift at UN
From Migrant Worker to Reform Pioneer
The fightback begins: Boss of London's Queen Mary University tells pro
Wang Shanshan Named Chinese Women's Footballer of the Year
LINKS
- Daisy Ridley makes a splash in blue beaded dress for Olympian
- U.S. move of tariff hikes sets bad example for free trade
- Bradley Cooper branded 'desperate' after studio submits his TWO
- Will AI replace doctors who read X
- China to strengthen administrative law enforcement oversight
- The Paralympics open in 100 days. Paris organizers are launching a campaign to boost ticket sales
- Man City wins record fourth straight Premier League title after 3
- Brest secures final automatic Champions League spot in French league, PSG wins without Mbappé
- Inside the race for the world's first MILE
- Chinese youngsters embrace more diversified tourism options