In the late 1950s there were widespread demonstrations in Japan. Many people were angry because American troops were still in the country. After a particularly violent demonstration in 1960, the prime minister, Nobusuke Kishi, was forced to resign.

   The new prime minister was a man called Hayato Ikeda. He decided that if people were busy working, they would have no time to worry about politics. In 1960 he announced the national income-doubling plan. If everyone worked hard, he said, the government would help; the national income could be double within ten years. His plan was astonishingly successful. In only four years the average income had doubled.

   Other factors contributed to Japan’s new and growing prosperity. Japan was pledged to peace. While other nations spent large amount of money on maintaining armed forces, Japan did not. The labour force was very highly educated. And rather than spending money on research, Japan imported the latest technology from more advanced nations.

More on Japan's economy : Prosperity & pollution  |  Boom years  |  Economic downturn

 



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