Macroeconomics
How did the Japanese earthquake affect their economy?
Introduction
Imagine you lost everything you had. Your belongings, your house, maybe even your family… hard to imagine, isn’t it? Well, for some people this became reality. When on March 11, 2011 a massive 9.0-magnitude earthquake occurred near the northeastern coast of Japan, and Japan was hit by enormous tsunami waves shortly after, the country was left in destruction. Thousands of people died. Millions more lost their homes and suffered from lack of electricity, water and transportation. They were destined to start all over and you wouldn’t blame them if they had lost their minds on the way. But they didn’t. The Japanese nation kept it together and instead of raging and complaining and crying in despair the reactions we got to see on the news were quite the contrary.It is their disciplined and determined nature that inspired me and that I think we should all learn from.
The Japanese economy clearly suffered from this earthquake which can be seen from numerous factors that have changed, for example Japan’s trade with other countries. That is why the question to be asked is, ”Should the Japanese government review their budget allocated to invest in social capital to put Japan back on the exporting frontier?”
This is what I would like to investigate in my extended essay by using economic tools, such as the Production Possibility Curve, Demand & Supply Diagrams, Aggregate Demand and Supply Diagrams, export and import analysis and exchange rate analysis.
Not only because of Japan’s role in the world’s economy should we take a look at all this. Also because we can learn from Japan.
What was the damage done to Japan’s infrastructure?
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22: "Japan's 1st Quake Relief Budget to Boost GDP by 0.6 Pct: Govt| Reuters." Business & Financial News, Breaking US & International News | Reuters.com. 27 Apr. 2011. Web. 13 Dec. 2011. .
Conclusion
It is quite obvious that Japan’s government needs to invest in social capital,and thus they need to review their budget allocated for investment; that they need to make it their priority until the country is recovered to get ‘back on track’. With investment in repair of roads and all other transport systems, investment in power supply and renovation of buildings, Japan will be able to compensate for the loss of revenue from exports they have made during the crisis.
Done by;
Dana Hammad;
Mahmoud saadeddin;
Gheed Al-Katib.
After evaluating the above factors, it is clear that the partnership between Australia and Japan is of significant importance to both countries. With reference to the Centre for Study of Australian-Asian Relations (1997:152) the future prosperity of Australia will to an increasing extent, be dependent on that of her neighbours in the Asia-Pacific area. Currently the Australia-Japan relationship could be described as “comfortable and relaxed”. However both Australia and Japan need to be alert to the changing environment and must ensure that the right frameworks and policy settings are in place in order for the two countries to prosper.
All in all, Japan in Transformation, 1952 – 2000 is a broad analysis of Japan’s social, political and economic issues following the US Occupation after World War II. Kingston’s knowledge of the material, attention to detail, and thorough analysis of the subject is an invaluable resource on this selection of topics from an important period in modern Japanese history.
Initially Japan’s objective for industrializing was to avoid being overtaken by Western superpowers, however during the process of industrializing the Japanese government realized that industrialization is key in order to remain a dominant force in the market during this new contemporary era. Thus the Japanese began to promote industrialization in order for national prestige, power, and wealth just as Germany did. In the end both countries were successful from modernizing and industrializing. Thus promoting the increase of power and wealth for members of the higher classes. While having generally negative effects on the members of lower classes.
Beginning in the early seventeenth century, Japan went from being one of the driving forces of technological and military power in the modern world to becoming outdated, old due to a lack of technological innovation. From this Japan was able to outlast the hard times, becoming once again becoming technological powerhouse. This was because, as stated in the book, “The Lexus and the Olive Tree” by author Thomas L. Friedman, they were able to find a happy median between the Lexus and the olive tree, in other words, new ideas and technology, while still maintaining traditional values of culture and race, both politically and socially. Japan was able to rebound, and regain political, social and economic stability and prosper in each after decades of internal conflict and turmoil because they, unlike similar contemporary non-western civilizations, focused on balancing new reforms with older, more historical governmental traditions.
At 5:12 a.m. on April 18th, 1906, the California city of San Francisco was awoken by a 7.8 magnitude earthquake. Chaos erupted with the earthquake leading to fire break outs throughout San Francisco (Cameron and Gordon. Pgs 69-73).The earthquake and the resulting fires caused destruction to majority of the city with buildings crumbling and igniting into flames. Many people died along with thousands and thousands of people being left homeless. This devastating earthquake left the city and United States in a financial crisis. Although the 1906 earthquake was one of the worst natural disasters in U.S. history, the city of San Francisco was able to overcome these substantial physical, social and economic impacts it had.
After World War 1 Japan had a hard time adjusting to the new world. “While its economy was still primarily agricultural, rapid population growth (to over 80 million) had diminished the amount of land suitable for farming. Many people lived in small houses, lacking running water. In a nation about the size of California, only one of every six acres was farmland. This put great pressure on Japanese government to find more space and land for its people.” (America Enters World War II page 12). Japan attempted to change its agricultural-based economic system to an industrial based system. “But the international system of trade barriers and tariffs, established by the United States and other industrial powers to protect domestic manufacturing, hindered Japan’s industrial expansion.” (America Enters World War II page 13). Many of the materials Japan needed were found in neighboring countries that were controlled by European powers. Japan began to question it’s right to Asian markets and raw materials. “J...
In the late nineteenth century, Japan’s economy began to grow and industrialize. Because of the scarcity of natural resources in Japan, they relied on imported materials from other countries. In September 1940, the United States placed an embargo on Japan by outlawing exports of steel, iron, and aviation fuel, because Japan took over north...
During the Meiji Restoration, Japan transformed into a strong industrialized nation by adopting the Western political, cultural, and technological ideas. Japan was the “only non-Western country to industrialize in the nineteenth century and that, moreover, she did so in an extremely short time” (Sugiyama 1). Japan’s social, political, and economic aspects were all affected by the Western technologies to transform Japan into an industrialized nation (Wittner 1). By adopting the Western ideas during the Meiji Restoration, Japan has turned into a powerful industrialized nation by becoming an “international political player in the 1880s” (Wittner 1).
Moreover, the context in which this book was written demonstrates that Japan is going through the financial affluence as well as the greatest boom since it is during the postwar period, much of the financial affluence had been caused by the consumerism in Japan. The author seem to be biased on this theme, despite the benefits consumerism has had on Japan, Yoshimoto goes ahead to give it a negative
Showed how Japan easily accepts and institutes foreign markets and ideas without hesitation or humiliation. They adapt so well to the outside world.
...ng in human nature that makes us unable to learn from history.” The truth is, that all of the causes of the economic bubble also contributed to the “overconfidence and overexuberance in Japan’s economy” (Colombo). This overconfidence allowed those factors to worsen the economy to an even greater degree because bubbles are worsened by the public consensus that prices will only rise. To make matters even worse, the government intervention after the collapse of the bubble was delayed and inadequate. Japan’s ideas were logical and potentially beneficial, if only they had been actualized a little earlier. Additionally, Japan was in need of a more authoritative law enforcement and a more compliant society. If Japan would have acted earlier and had these conditions, then its chances of recovery from the collapse of its economic crisis would have been significantly greater.
Japan is a harmonious society with low rates of litigation, crime, and divorce. Their citizens learn to be attentive to others, to value group goals more than immediate personal gain, and to broadly include everyone in group activities and decisions.
Fifty years after the end of the second World War, it is easy to look back on the American occupation of Japan and see it as a mild nudge to the left rather than a new beginning for the country. We still see an emperor, even if only as a symbol. Industry, when it was rebuilt, was under much of the same leadership as before the war. Many elements of the traditional lifestyle remained–with less government support and in competition with new variants. The Japanese people remained connected to a culture which was half western and half Japanese. Nevertheless, it is irrefutable that the surrender in 1945 had a major impact on the lives of the Japanese. Political parties, elected by the populous, became a great deal more influential in the government. This changed the dynamics of Japanese industry, even if the zaibatsu were sill the foundation of the economy. Financial success took on a new character; the production of high tech goods for sale to the world’s most developed countries was now a better source of income. The affluence of the upper class was more evenly distributed. On a broader scale, for the first time, America had more influence than European powers. The prevention of the formation of a military put the focus of the government on trade, the United Nations, and the cold war rather than an empire in Asia. Simultaneously, social attitudes and lifestyle were more independent of the government and consumer led.
...s a year. Yet, at the same time Japans soil is a problem. Trees are one of the most important resources of Japan. Green stands of timber cover nearly two thirds of the land. These forests include varieties of wood, both hard and soft. Now onto the agriculture of Japan, this is the most important occupation for the people, just because the land is so precious the average farm is only two or three acres. On these farms they grow rice, wheat, and potatoes. The wonders of the economy and trade are basic, just like the United State’s economy and trade.
Japan is one of the greatest countries in the world and it has offered many things as well. The Japanese have given the world a better understanding of their culture and history along with a good look at the future from a technological standpoint. They have developed and created the future for their country that has allowed them to be prosperous and powerful. They once isolated themselves from the rest of the world, but now they share their knowledge with other countries in order to create a better understanding of the world. Through their trade and creative thinking they have become one of the world’s largest and powerful countries and have allowed their economy to flourish and prosper.