The Japanese Dialectic : The Allied Occupation of Japan and the Establishment of a Free Market Welfare State
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Many historians have described the conflicting nature of many of the economic paradigms that Japan adopted during the period of post-war occupation. This study will address those contradictions and show how each economic paradigm had something important to contribute in promoting postwar economic growth. This study argues that an instrumental source of Japan's sustained postwar economic growth was Japan's adoption of various, even conflicting economic approaches and ideas as well as Japan's ability to retain these diverse ideas. The reason for this is because each paradigm complemented and reinforced the others and supplied a diverse set of tools to meet different challenges. These ideas and approaches include the mobilization of the manufacturing industry, the development of a new scientific frame of reference, and active government intervention in the economy. There were, however, profound limits to the degree of compatibility between these paradigms, for remobilization induced rapid growth was ultimately obtained at the expense of the democratic ideals of the reform period government intervention. This leads to another important finding of this study, that postwar Japanese democracy and capitalism did not go hand in hand.