1. 21-1 CM

2.  Zaibatsu – since the late 1800’s, powerful banking and industrial families in Japan  Gross Domestic Product – total value of all goods and services produced by a nation  Trade deficit – situation in which a country imports more than it exports

3.  Japan suffered the most after WWII  Had tens of thousands homeless  US entered Japan with two goals  Wanted to destroy militarism and ensure a democratic government  Needed to get rid of Japan’s military to accomplish the first  Had trials to further discredit Japan’s military after the loss  Got Japan to agree to never maintain military forces except for their own defense  Japan’s emperor lost power and Japan became a constitutional monarchy  People held the power and elected officials to the parliament  Constitution also protected basic rights  Thought, press, and assembly  Occupation forces brought social reforms  Emphasized legal equality for women  Americans introduced economic reforms to promote democracy  A sweeping land reform program divided large estates among tenant farmers  First time peasants owned land  Erased remaining traces of feudalism  Cold War tensions heightened and US grew eager to end the occupation  Signed a treaty in 1952 with Japan  American military forces operated out of bases in Japan  Japan was in turn protected by the US nuclear umbrella

4.  Japan’s gross domestic product soared, and Japan recovered and made an economic miracle  Japan’s success was built on goods produced for export  Started with textiles  Later shifted to steel for ships and machinery  Had to restart its economy from scratch but quickly rebuilt its industries  Adapted newest technology to outcompete other industries

5.  In the 1970’s Japanese cars, televisions, and cameras found buyers in the world market  Soon Japanese electronic goods, from computers to robots, were competing with Western and especially American products  Japan had a highly educated and skilled work force  Some Japanese companies would guarantee employment for life to their employees  Japanese workers saved much of their pay  Savings resulted in capital for the banks to invest in industrial growth  Investment was made because the government did not have to spend money on a large military

6.  Japan depended on trade due to limited resources  Imported raw materials like iron ore and exported more profitable goods like steel  Ended up exporting more goods than it imported  Japan began to invest worldwide as its economy grew  Invested in existing businesses and real estate  Operated mines and plantations  Built airports and chemical plants  Sent Japanese engineers around the world  Japan limited its imports and exported as much as possible  Would sell more to a country than it would buy from them  Caused national business owners to feel threatened as more Japanese product was bought than their own  US claimed the trade barriers deprived US corporations a fair chance at selling their goods in Japan  Threatened to raise tariffs to reduce deficit  Threat designed to force Japan to open up to more American imports

7.  Japan felt the negative effects of interdependence due to its need for raw materials  Japan’s industries fed on cheap oil imports  OPEC’s price hikes in the 1970’s sent shock waves through the economy  Japan sought better relations with the oil countries of the middle east  Also sought to build more efficient power and improve public transportation  Japan sought economic openings in Asia  Japan was slow to apologize for wartime actions  Did work hard to regain the trust of neighboring people  By 1980’s, Japan was a major investor in China  In the 1990’s Japanese leaders offered some public regrets for death and destruction during the war years  Japan took a back seat in politics for many years despite it being an economic superpower  US has recently urged Japan to rearm and assume more of the costs for its own defense  Asian neighbors oppose Japan’s rearmament  Japan is divided on the issue

8.  In the 1990’s Japan suffered its worst economic depression since the 1930’s  Many companies had to make cut backs and many workers lost guaranteed lifetime employment  Japan’s democracy has survived many crises  The Liberal Democratic Party had dominated the government since the 1950’s  The LDP is a coalition the competes for behind the scenes top government positions  Some younger members broke from the LDP threatening its monopoly on power  Today most Japanese live in overcrowded cities  Housing is expensive and space is scarce  Many people live in tiny apartments  Urban crime is relatively rare  Many modern Japanese structures are built with quake proof technology due to the high number of earthquakes  More quake resistant then quake proof

9.  Women have legal equality and often control the family finances  Traditional views keep them ion lower positions in the workplace  Most women are in low paying jobs or family run businesses  Work ethic  For years Japanese sacrificed family life to work long hours  Saved much of their earnings  Many younger Japanese want to enjoy the benefits of economic success  Some older Japanese are worried that the work ethic is weakening  Workers also feel less loyal to companies as lifetime employment fades away