What were the major economic reforms during the US occupation of Japan?

The major economic reforms during the US occupation of Japan included land reform, labour reform, and the dissolution of zaibatsu.

The US occupation of Japan from 1945 to 1952 brought about significant economic reforms aimed at transforming Japan into a democratic nation. One of the most significant reforms was the land reform, which was designed to break up the large agricultural estates and distribute the land to tenant farmers. This was a radical move that aimed to reduce the power of the rural elite and promote a more equitable distribution of wealth. The reform was largely successful, with over 5 million acres of land redistributed to around 2 million farmers. This not only improved the living standards of the rural population but also stimulated agricultural productivity.

Another major reform was the labour reform, which aimed to democratise the workplace and improve the conditions of workers. The occupation authorities introduced laws that recognised the right of workers to organise, bargain collectively, and strike. They also established minimum wage standards, maximum working hours, and safety regulations. These reforms empowered the Japanese working class and led to the growth of labour unions.

The dissolution of zaibatsu, the large family-controlled vertical monopolies, was another significant economic reform. The zaibatsu had dominated the Japanese economy for decades, controlling key industries such as banking, shipping, and manufacturing. The occupation authorities viewed the zaibatsu as a major obstacle to economic democracy and sought to dismantle them. They did this by prohibiting interlocking directorates, restricting stockholding, and encouraging competition. This led to the decentralisation of economic power and the emergence of new industries.

In addition, the occupation authorities implemented financial and monetary reforms to stabilise the Japanese economy. They introduced a new currency, the yen, to replace the old one, which had become worthless due to hyperinflation. They also established a central bank to control monetary policy and regulate the banking system. These reforms helped to restore confidence in the Japanese economy and set the stage for its post-war recovery.

Overall, the economic reforms during the US occupation of Japan were transformative, reshaping the country's economic structure and laying the foundation for its remarkable post-war economic growth.