1. Regarding the Japanese miracle, Paul Johnson summed up several reasons: the various development factors are perfectly combined in a suitable time period, which is a basis for us to examine modern Japan.
By 1953, Japan had completed post-war reconstruction, only four years behind Germany. Then it began a 20-year development period with an average annual growth rate of 9.7%. This is almost twice the speed of any important industrial country in the post-war period. What is truly comparable to this is the brilliant growth of the US economy 40 years before 1929. This “miracle” was built on the basis of cars. During the highly intense period from 1966 to 1972, passenger car production grew at an alarming rate of nearly 29% per year, and Japanese car ownership increased by one-third every year.
There is nothing magic about this miracle. It is an easy-to-understand example of Adam Smith’s economics, but it touches a little Keynesianism.
A high proportion of fixed capital constitutes little investment in non-productive.
2. In the process of rapid development, Japan has also experienced a period of special consideration for itself. We are familiar with such greatness as Tokyo Real Estate bought the entire United States.