The Japanese economy, which had recovered due to the special demand of the Korean War, then entered a period of high economic growth that was unprecedented in the world. From 1955 to 1973, Japan's real economic growth rate exceeded 10% on average annually, double to four times that of Western countries.
Business name
The media used to name the boom and bust from time to time.
Names of booms and busts in each era- 1950-1953 ... Korean War Special Demand Economy
- 1955-1957 ... Jinmu Boomer (31 months)
- 1958-… Nabezoko recession
- 1958-1961 ... Iwato boom
- 1962-1964 ... Tokyo Olympics economy (24 months)
- 1965 ～… Recession in 1965
- 1965-1970 ... Izanagi boom (57 months)
- 1973 ... First oil shock
- 1985 ... Yen appreciation recession (temporary recession due to sharp appreciation of the yen in autumn)
- 1986-1990 ... Heisei economy or bubble economy
- 1997-... Heisei recession from the bursting of the bubble
Cabinet Office Long-term Economic Statistics Created from National Accounts
1955 The Jinmu boom of Japan was named after the fact that it was said to be the best economy since the first emperor Jimmu, 1958 . The subsequent boom was to ask if a name before Emperor Jimmu could be given, and the Japanese mythology [ Amano-Iwato ] It seems that the name was given from the episode.
The episode of Amano-Iwato is that the world was enveloped in darkness because the goddess of the sun withdrew into a cave-like place for fear of her younger brother, the raging god.
In addition, 1965 The Izanagi boom continued from the Iwato boom, so it goes back even further than Amano-Iwato [ Izanagi no Mikoto . ] It seems that he got a name from.
This Izanagi Nomikoto is the god who has been trapped in the cave I mentioned earlier ...
Amaterasu Omikami is the father of Amaterasu Omikami, and is said to have been born from the left eye of Izanagi. It is also said to be the 7th ancestor of Emperor Jimmu.
Characteristics of each economy
In the 1965 Economic White Paper during the Jinmu boom, the economy was so booming that the catch phrase "no longer after the war" was often used, and the per capita consumption exceeded the prewar level of 1953.
Iwato boom At that time, exports of textiles and machinery were strong, and companies such as factory construction made a lot of capital investment. In this situation, the 1960 Economic White Paper states that "investment calls for investment."
In the petroleum industry, we introduced new technologies from foreign countries and made technological innovations to create coastal industrial areas such as steel and petrochemicals in various parts of the Pacific coast. A complex was also created there, and the pursuit of [profit of agglomeration] including related industries was pursued.
Income Doubling Plan
1960 In addition, the Hayato Ikeda Cabinet announces the [Income Doubling Plan].
It is a long-term economic plan formulated under the Ikeda Cabinet, and the goal was to double the real gross national product in the 10 years from 1961, but the Japanese economy has developed more than expected and the goal is It will greatly exceed.
The income of the people has also increased, and during this period three sacred treasures Caused a consumption boom, expanding domestic demand and pulling the economy.
With the spread of black-and-white television, TV commercials have stimulated people's desire to consume.
When the refrigerator appeared, it turned out that it was delicious to cool the warm beer and juice that were drunk at home, and with the spread of the refrigerator, beer and soft drinks sold explosively. Having a washing machine and an electric rice cooker at home has dramatically shortened the time spent on housework, and women's social advancement has increased.
Fixed investment type that depends on domestic demand in the first half Due to the economic growth of Japan, the economy became booming, imports of raw materials increased, the balance of payments deteriorated, the Bank of Japan tightened due to a shortage of foreign currency, and the economy fell. I will continue to do.
1965 Izanagi boom from Features export-led With the economic growth of Japan, international competitiveness was strengthened in the heavy chemical industry field where capital investment was advanced, and exports of steel and electrical products increased, and the balance of payments ceiling was lifted.
The current balance of payments has always been in the black, and the government has issued government bonds to expand public investment, making the Izanagi economy the largest after the war in 57 months.
In the booming economy, [ My car, color TV, cooler ] 3C boom has occurred in people's lives and has become widespread.
And 1968 In Japan, GNP is second after the United States in a liberal economy. It will be. Four years ago, everyone was able to travel abroad, and when the starting salary for college graduates was 20,000 yen at that time, it was 700,000 yen for 17 days in Europe and 360,000 yen for Hawaii.
Background of high economic growth
Economic growth tends to rise exponentially when certain conditions are met.
The conditions include sufficient resources related to value-added productivity, the demand to consume them, the technological innovations that shape them, and the abundant labor force. These conditions combined to contribute to the high economic growth of postwar Japan.
Abundant labor force
Japan's high-growth period is from 1954 to 1970. After the war, the group that was in full swing from overseas will be in the prime of work, and after around 1962, the generation that grew up in the first baby boom will take on the role of society as a labor force.
From the Cabinet Office's changes in the number of births and the birth rate
Meanwhile, the tendency for more people to move from rural areas to urban areas begins to emerge.
Industrialization has progressed in urban areas and labor has become necessary (wage is urban> rural), the infant mortality rate has decreased at a stretch, and about four working generations have grown up and there are fewer places to work in one family. Is also considered to be the reason why the population moved from rural areas to urban areas. This tendency has contributed to Japan's economic growth by allowing hard-working labor to be hired at relatively low wages.
Furthermore, lifetime employment / seniority-based wages Supported by such working conditions, private companies will form cooperative labor-management relations.
Technological innovation and capital investment
In the early days of high economic miracle, wage costs were small and profits were large, so we invested in improving and expanding equipment. All the companies introduced the technology and played a role in the technological innovation.
As a result, productivity has been greatly improved and mass production has been carried out.
Japan's savings rate
Japan has a high savings rate, and the collected deposits are diverted to corporate funds through banks and used to fund capital investment. Abundant funds were indirectly supplied to the company.
International Economic Situation
Crude oil in the energy field that greatly supported economic growth And many mining resources Is cheap and easy to get, $ 1 =¥ 360 Fixed exchange rate increased exports.
Expansion of domestic market
The income level of the people has risen, and the domestic market has expanded, centered on home appliances and automobiles. It's just a positive loop.
Government's industrial protection and subsidy policy
The government has improved the capital of production-related companies for roads, railroads, and bay ports, and provided tax incentives.
What the high economic miracle brought about
Depopulation / Overcrowding due to urban population concentration A pollution problem occurred due to the overcrowding of factories. The weather was fine at the opening ceremony of the 1964 Tokyo Olympics, but it is said that the sky was dyed gray due to the exhaust gas from the factory.
1967 due to pollution problems The four major pollution trials have started in Japan, and the Pollution Control Basic Law Was also enacted, and the Ministry of the Environment will be established in 1971.
Due to the increase in population, the housing situation in big cities has deteriorated, and the deterioration of living environment such as traffic congestion, noise, and garbage problems has become a problem.
Sophistication of industrial structure
The ratio of the primary industry has decreased, and the weight has shifted to the secondary industry and the tertiary industry.
In addition, among the secondary industries, the weight has shifted from the light industry to the heavy chemical industry, the tertiary industry has expanded, and the economy has become softer and more serviceable.
Lifestyle changes
High economic growth has increased the number of office workers, and women's social advancement has also become active.
In the era of heavy consumption, people's values changed and they became more particular about things and money.
The end of high economic miracle due to stable growth
1973 The oil crisis (oil shock) occurred in Japan, and the Japanese economy was confused.
Organization of Arab Petroleum Exports [OAPEC] has implemented an oil strategy to reduce crude oil exports and raise crude oil prices to the United States and Japan, which support Israel in conflict, and crude oil prices have skyrocketed worldwide.
This oil strategy has quadrupled the import price of crude oil, leaving Japan's balance of payments in the red. Frenzy prices due to soaring crude oil prices where inflation was progressing The price went up to the extent that it was called.
Therefore, the government has adopted a policy of curbing aggregate demand.
- Control of fiscal spending such as reduction of public works projects
- Increase the official discount rate (up to 9%, the highest level in 1973)
As a result, frenzy prices will subside, and stable economic growth of about 3% to 5% will be achieved from 1974 to the early 1980s.
1979 Second oil crisis caused by the suspension of crude oil exports due to the Iranian Revolution Will occur.
1978-1980 Crude oil prices have risen 2.4 times over the years. Countries around the world faced an economic crisis with an unemployment rate of over 10%, but in Japan, where resource conservation was progressing, the crisis was overcome in a relatively short period of time.
The oil crisis of the 1970s will shift from high economic growth to low growth, promote energy saving and resource saving, and companies will be responsible for rationalizing management.