What Are The Causes Of Japan's Economic Depression

The Global Depression began in the United States in 1929 and had a worldwide effect on the economy of various countries; factors included unemployment and deflation. The Global Depression sparked “fundamental changes in economic institutions, macroeconomic policy, and economic theory.” This meant that there were severe economic impacts made on many countries which led to different outcomes.

Japan was in an economic depression called the “Showa Depression,” which was the deepest economic downturn at the time. It was caused due to two main reasons. One of the reasons was that the Minsei Party government adopted a deflationary policy. The policy was used in order to eliminate weak banks and firms. The policy also focused on “preparing the nation

For example, there was a tariff act called the “Smoot- Hawley Tariff Act,” which was signed by President Herbert Hoover in 1930. The “Smoot-Hawley Tariff Act” was used in order to raise import duties, which were used to protect businesses and farmers in America. The act put a strain on the economic climate of the Great Depression. The Tariff act also had a direct effect on Japan’s economy. Since the United States had raised taxes, Japan had to find another market to export

Since Japan was recovering from the economic difficulties that were experienced, this led them to want to expand to benefit their own country. This led to Japan taking control of other countries in order to gain power and economic advantaged. Japan became interested in Manchuria due to the resources available such as coal, iron, and timber, which led to Japan wanting to take over Manchuria, in order to make profit. By expanding to Manchuria, Japan would be able to have a better market, and more space since Japan was overpopulated. Diplomat Yosuke Matsuoka recognized Manchuria as a “lifeline’ and [the] only means of survival.” From this, it is evident that the Global Depression led to Japan’s need for expansion. Japan was looking for a way to expand their land in order to gain the power that was lost due to the depression. As previously stated, Japan wanted to expand and take control of Manchuria to have more access to resources which would benefit the economy, and wanted to have more land for the