I tried to search for this question alot but I didn"t find anything so I said to ask my question here maybe someone knows how to answer it!!

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    You have not tried. This query leads to this one (the 6th result) – Voitcus May 22 '15 at 7:21
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    You should at least explain why you think there is a coincidence between dropping a nuclear bomb and expectation of poor economy. There was no other example in history of dropping nuclear bombs on enemy. A layman could say "having been attacked with a nuke increases economy because every historical example proves it" – Voitcus May 22 '15 at 7:24
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    I would want to point that, while it is true that the atomic bombs caused a big devastation, the firebombing of Japan with conventional explosives (Tokyo, Yokohama, etc.) caused considerably more damage (it was estimated that 1/7 of Japan urban area was destroyed only during may 1945). Do not understimate conventional bombing effects. Hiroshima and Nagasaki were in fact targets of secondary importance; the USA wanted to test the bombs against "untouched" cities and most of the main cities had been devastated. – SJuan76 May 22 '15 at 11:14
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    @KentaroTomono you should leave your answer, it's good, even if question is poorly written. Sometimes a good answer can "rescue" a bad question. – Voitcus May 22 '15 at 11:20
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    Note that we could ask much the same question about post-war Germany, which had much of its infrastructure destroyed by Allied bombing, yet recovered in a relatively short time. The conventional answer (though I have no idea how close it is to truth) is that the war destroyed antiquated industrial base, and the Americans paid to build a new one. – jamesqf May 22 '15 at 18:51

I suppose the answer to your question is that, firstly, we definitely have to consider the aid by the U.S. after the war. Like, well, Japanese children asking for the American soldiers for chocolates etc, but the real booster in terms of the economic impact was probably due to the korean war.

SCAP officials believed economic development could not only democratize Japan but also prevent the reemergence of militarism, and forfend communism. Military hostilities in the Korean peninsula further boosted the economy in 1950 because the U.S. government paid the Japanese government large sums for "special procurement." These payments amounted to 27% of Japan’s total export trade.1 The United States also insisted that Japan be admitted to GATT as a "temporary member" – over British opposition. During the Korean War, SCAP departed and the Treaty of San Francisco restored sovereignty to the government of Japan.

This ratio quoted above was remarkable. Kindly take a look here too.

Coincidentally one of the initial pushes towards the boom came from the start of the Korean war, and the US paid Japan for military goods and services. Between 1951-53 approximately 60% of all Japanese exports went toward supporting the Korean war. Large companies within Japan made profits for the first time since the end of the war and Japan's GDP soared like never before.

Although the ratio (to the export) described is different, Japanese official text mentioned the effect of Korean war too, so that I think the Korean war was the first booster.

After the war came the period of the production of 三種の神器(translated : "Three sacred treasures", referring to 1 - Television, 2 - Washing machine, 3 - Fridge)

Three signs of affluence in the post-war period were the “three sacred treasures”, a television, a fridge, and a washing machine, and by 1964, 90% of households possessed all “three sacred treasures”. Most families had sought to equip themselves with these luxury items, and in the years that followed, consumer demand increased significantly.3 From 1951 to 1967, for instance, the percentage of paid radio subscriber households rose from 58.6% to 93.4%, while from 1952 to 1970, the percentage of paid television subscriber households rose from 0.01% in 1951 to 94.% in 1970.4 By 1970, 98% of all employee households owned a washing machine, 95% a gas or electric refrigerator, 80% a vacuum cleaner, 77% a camera, and 67% to 70% a television set.

That was when today's Mitsubishi Electronic, Sony, Toshiba Inc, etc, which I think are still famous worldwide today, were born.

Then we saw "Golden Sixties", but kindly read the page I sourced, since I would have to cover the Japanese post-war economic movement entirely here.

Thank you very much.

  • uhmm...thank you so much for upvoting........kindly be reminded I happened to be Japanese and am about to be / was a social science teacher...so what I said is not so much worth with +5 upvotes...... – user12387 May 22 '15 at 12:28
  • I've taken the liberty to improve the clarity of your answer with some corrections and by adding punctuation and some formatting. --- Also, you don't need to be so reserved; your answer is excellent and it deserves all the upvotes, including my own, which I just added. – XenoRo May 24 '15 at 16:50
  • Let me thank for your assistance! – user12387 May 24 '15 at 17:53

The economy of Japan was in terrible shape. There were shortages of all essentials such as food and housing. The functioning Japanese government had little in the way of financial resources. The tax system was not operative and the public had little to tax. The U.S. government provided food supplies to the Japanese government which sold them to raise funds for its operation. The government dealt with its deficits by printing up MONEY. This of course led to inflation. SCAP called for Japanese authorities to write a new constitution. The old constitution which had been adopted in the Meiji Era was modeled on the Prussian constitution and gave all the real authority to the bureaucracy. The government authorities made inconsequential modifications to the old constitution and MacArthur gave up on them making any real changes. Instead he FORMED a group within SCAP and assigned them to formulating a new Japanese constitution in six days. None of the members of the group had a background in constitutional law.

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    -1. This begins to explain how bad the situation was, but does nothing to answer the question, namely how did Japan recover so quickly after the devastation of the war. – user4139 May 22 '15 at 11:18
  • I think your first line is correct. But when it comes to the last part ( new constitution thing ), since MacArthur well knew the importance of the Emperor to the people in general, it is rather He who remained the emperor.... ( many argued if the emperor should be in trial for the responsibility to have stated war although ). – user12387 May 22 '15 at 11:51

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