Press translations [Japan]. Economic Series 0217, 1946-01-27.
Date27 January, 1946
RepositoryRauner Special Collections Library, Dartmouth College.
Call Numbereconomic-0974
Call NumberDS801 .S81
Persistent Identifier
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ECONOMIC SERIES: 217
ITEM 1 Capitalism or Socialism - Magazine: Diamond - Jan 46. Translator: Amano & Tanura
Summary:
JAPAN's economic system is in a rather chaotic state, and it is difficult to foresee
whether it will be capitalistic or
socialistic. From the standpoint of politics and economics, the principle of democracy
has been decided upon, and a thorough
reform can be carried out on the political front without any trouble. But what of
the economic front? It is said that
democracy and capitalism are in contradiction to each other. Ordinarily, democracy
is based on elections, but capitalism
inevitably developes into monopolistic capitalist, which in turn changes into imperialism,
and thence to militarism. Therein
lies the danger of war.
The political system of ENGLAND and the U. S. is naturally based upon democracy,
but their economic systems are still based on
capitalism. It could be said that ENGLAND is going through a transition period from
capitalism to socialism. But it is
entirely different in the United States.
Which method will MacARTHUR's Headquarters expect JAPAN to follow? Will it be the
American or the English? Naturally it will
be the American way, but there is a lack of clarity in its limitations. The American
method is not truly perfect, especially
in the method of accumulating capital. We wonder whether MacARTHUR's Headquarters
fully understands the specific problems in
JAPAN, and, likewise, we may not understand the specific problems in the United States.
In any event, our greatest problem
today is to make clear the application of democracy, and its limitations in the economic
system.
ITEM 2 Inflation or Catestropho by Shirag[illegible],. Toutomu. - Magazine: Diamond
(Thrice-Monthly) - 1 Jan 46. Translator: S. Kurata
Summary:
The Japanese seem to lack the ability to come to grips with things objectively. The
problem of inflation, for instance, should
be approached objectively, not merely idealogically. JAPAN today is on the averge
of catastrophe. There is no time to talk of
the various idealogies involved. The basic fact about JAPAN's economy today is not
that prices are high or that there is a
surplus of purchasing power, but that there is an absolute scarcity of food. Until
this basic shortage is remedied, no
makeshift measures to reduce purchasing power, or to limit prices, will succeed in
curbing inflation or in restoring order to
our economy. In short, JAPAN's economic structure is on the brink of death. We must
save the patient immediately with, say a
complete injection before we can discuss such incidental matters as currency inflation.
In considering measures to be taken, we should not ask whether or not a certain measure
will increase inflation, but whether
or not it will stimulate production. With the purpose in mind that the whole nation
ECONOMIC SERIES: 217 (Continued)
ITEM 2 (Continued)
must unite political and idealogical differences must be put aside, and a planned,
concerted effort must be made to achieve
our goal.
As a result of the coal shortage and allied factors, those of our industrial works,
which are still functioning will soon come
to a stop. Farmers, upon whom we depend for our food, will then be the only element
of our society in action. But the farmers
themselves are badly in need of fertilizer and farm implements which cannot he supplied
to then unless industry continues to
function. The primary question, then, is how to promote industrial production, especially
the production of chemicals, farm
implements, and other items which the farmers need.
In view of the fact that, in their present uncertain status, factory owners are doing
little or nothing to increase
production, there seems to be no other way but to let present owners run their factories
as they wish; to give them full
freedom of action, and full responsibility. Neither the Government nor the workers,
in our opinion, will be able to run the
factories efficiently. The Government, furthermore, must not seek to control production,
but on the other hand, must give all
possible financial and other assistance necessary to increase the production of essential
commodities.
While we are taking these steps, we need not fear an undue rise in prices. Purchasing
power apparently has already begun to
decrease, and it will continue to do so. Our only concern at the moment should be
to increase production. When the quantity of
goods produced has been substantially increased, we can turn our attention to the
stabilization and equalization of our
economy. Under the circumstances which confront JAPAN today, we cannot very well concentrate
on increasing production and
controlling inflation at the same time.
ITEM 3 War Profit Tax and Property Tax - Magazine: Toyo Keizai Shimpo (Weekly) - 19
Jan 46. Translator:
N. Yagyu
Summary:
A war profit tax is going to be levied showing the Japanese that war does not pay.
Inasmuch as, even in the victorious
countries, BRITAIN and the UNITED STATES, a similar tax of 95 to 100 per cent has
been imposed, it is natural that we, the
vanquished, should bear a heavy burden. But, in fact, the Government has already taken
part of our war profit in such forms as
excess profit's tax, corporation tax, amusement tax, income tax, and so forth. The
authorities, therefore, should be as
careful as possible not to make the imposition double.
The new property tax is of an un[illegible]recedentedly high rate and might rather be called a. capital
levy. After World War 1 most nations adopted the capital levy, but they only repeated
the same failure, and could not attain
the projected purpose. BRITAIN did not adopt the tax after deep deliberation. The
object of a property tax is to tax private
property. The economic figures night indicate an increase in the value of private
properties in JAPAN, but, virtually, they
have decreased, mainly because of land loss and war damage. A property tax in a defeated
country differs categorically from
that in a victorious one.
The purpose of taxation are "prevention of inflation" and "the adjustment of the
gulf between rich and poor." But it is
impossible to give the stupendous task of absorbing 40 or 50 billion yen over to the
new tax alone. We should direct our
attention to the ordinary taxes such as income tax and indirect taxes. For the people's
properties to be properly taxed, they
must be fairly assessed. But they are so fluctuating, at present, that it would take
much tine to value them exactly. In this
respect, the importation of rice, and the exchange of the old by the new currency
will help settle the fluctuation. The
capital levy is conducive to the prevention of inflation only when it encourages the
people's desire for production.
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ECONOMIC SERIES: 217 (Continued)
ITEM 3 (Continued)
The tern of paying the tax, as well as its method, is another problem. The people
are not in a position to pay all of the
duties with cash, bonds, or other such valuables. Then tax in kind must he allowed.
Here comes the question of valuation
again. When the Government gains a large sun of money through the taxes, it is most
likely to use it in ordinary expenditures.
But this would be against the first purpose, which is the prevention of inflation.
The capital levy cannot be put into
operation without the people's co-operation. The authorities should not abuse the
penal law affecting tax-dodgers. They
should, rather, make the people know the real significance of these taxes so that
they might willingly co-operate with the
Government.
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