ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The decreased spending on military and defense forces are clearly one of the main reasons for Japan’s economic miracle. In addition to the demilitarization, series of reform policies were set forth by the SCAP during the occupation, which was aimed to democratize the country.

Detailed explanation-2: -The war wiped out many of the gains which Japan had made since 1868. About 40% of the nation’s industrial plants and infrastructure were destroyed, and production reverted to levels of about fifteen years earlier. The people were shocked by the devastation and swung into action.

Detailed explanation-3: -As the Cold War unfolded in the decade and a half after World War II, the United States experienced phenomenal economic growth. The war brought the return of prosperity, and in the postwar period the United States consolidated its position as the world’s richest country.