Current location:Earth Edges news portal > style
VOX POPULI: Leadership skills of the past are missing in the politics of today
Earth Edges news portal2024-05-22 04:43:50【style】1People 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.
Address of this article:http://spratlyislands.adventistmissionjapan.org/html-9e399989.html
Very good!(53192)
Related articles
- Amtrak train hits pickup truck in upstate New York, 3 dead including child
- China's Shandong seeks high
- Yemen's Houthis claim missile attacks on British, Israeli, U.S. ships
- Xi Jinping meets Ma Ying
- UN Security Council rejects Russia
- Hamas says UNSC resolution demanding Gaza truce shows Israel's isolation
- Türkiye's opposition takes election lead in key cities
- Chile to recall ambassador from Venezuela for consultations
- 'Real life' Martha from Baby Reindeer's million
- Giving China's treasures a modern touch
Popular articles
Recommended
Xander Schauffele gets validation and records with one memorable putt at PGA Championship
Mainland spokesperson voices support for law enforcement patrols around Kinmen
5 Chinese nationals, 1 Pakistani killed in terrorist attack in NW Pakistan
China's Qinghai sees significant growth in green coverage in 2023
Bella Hadid goes braless in a thigh
Chinese border region not affected by radiation source in Russian city: Authorities
Bangladesh mulls to suspend services of Facebook, YouTube: minister
China sees steady progress in diagnosis, treatment system: health official
Links
- Wetherspoons adds exciting dishes inspired by global cuisine in a major menu shake
- ‘Alien: Romulus’ director teases how the new film connects to its roots
- Bevy of defensive playmakers are available in Round 2 of the NFL draft after historic offensive run
- Chinese film festival screens 8 Russian movies
- Candice Swanepoel and Kate Upton show off their long legs as they pose up a storm on Segways in high
- Marta says this will be her final year with Brazil's women's national team
- Nearly 500 movies compete at Silk Road film festival
- Fall in love with Chinese instrument hulusi flute
- Scotland's under
- Bevy of defensive playmakers are available in Round 2 of the NFL draft after historic offensive run