MacArthur Reorganized Japan So Completely, The Japanese Economy Became Larger Than Germany’s By 1960

When General Douglas MacArthur took command of occupied Japan in August 1945, the country was physically devastated, its institutions collapsed, and its economy nonexistent. MacArthur implemented land reform — breaking up large estates and giving land to farmers who had worked it for generations. He wrote a democratic constitution. He rebuilt industrial infrastructure. He banned the old military industrial zaibatsu from monopolistic control. He established free press, labor unions, and women’s suffrage. Japan had none of these before. By 1960 — fifteen years after MacArthur arrived in a defeated country — Japan’s economy had recovered to surpass Germany’s and was accelerating toward becoming the world’s second largest. The occupation MacArthur ran is studied as the most successful national reconstruction in modern history.

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