How Did The Keiretsu Affect The Japanese Economy

Next, aspects of the evolving Japanese labor market, such as the types of industries in the economy, the demographics of the Japanese population, and the adapted work-related policies, contributed to Japan’s economic revival. One of the most influential changes that occurred in postwar Japan was the introduction of the keiretsu. The keiretsu had many similarities with the prewar zaibatsu, although they did not have the same oligopolistic (a few large firms in an industry) powers that the zaibatsu had. Because they had a lot of power, they were able to invest in the latest technology and, as a result, involve themselves in various manufacturing industries (Allinson 104). Because the keiretsu could afford new technologies, their production

However, analyzing the Japanese economy purely through the lens of an economist seems to leave out major aspects of the argument and implies that the Japanese economic miracle can simply be explained by the market forces of supply and demand. By acknowledging the importance of government policy, which encouraged people to save money and encouraged labor strategies such as lifetime employment, as well as the fact that the Japanese people were able to cooperate well with each other, one can come to the conclusion that Japan’s economic revival was anything but luck. Thus, the economist perspective that “no miracle occurred” in Japan is not the most appropriate theory, due to its failure to incorporate other important factors into the analysis. However, I do not think that “miracle” is the correct term to describe Japan’s postwar economic success. The Oxford English Dictionary defines miracle as “a marvelous event not ascribable to human power or the operation of any natural force” (“Miracle”). While the revival was definitely miraculous, calling the Japanese economic boom a “miracle” seems to underemphasize both the roles of the government, which worked to create incentives to boost the economy, as well as the roles of the citizens of Japan, who worked together to rebuild their