Political and economic impacts of the great depression
Economic impact
 immediate and catastrophic
 Massive suffering for the Japanese people
 Possibly not as bad as the other countries impact
 W Miles Fletcher suggests that its impact was mild
compared to US and Europe wheras Stokes and Stokes
talk of “desperation and distress”
 Definitely had a devestating impact at least in the
short term
 Within two years Japanses exports to the US had
fallen to 40% while to China they had fallen over 50%
 Farmers badly affected
 Collapse of silk (export price fell nfrom 1420 to
390 yen) which was devestating in Japanese
countryside – had enabled half of Japanese farmers to
keep their head above water – many farmers reduced Hamaguchis government which signed the APRIL 1930
to a state of desperate poverty
 Also large fall in price of rice
 Gross income of agricultural households fell by
45%
 Situation worsened in 1934 as many rurual
communities hit by famine
 North eastern region of tohuko was hit very badly
 Rural poverty even forced some farmers to sell
children into prostitution
 Rural distress caused anger and deep resentment
against government and big businesses
 Most conscript soldiers were from peasant
families
 Furthermore farmers were the most conservative ARMY WAS ALSO ANGERED BY GOVERNMENT OTHER PLANS
group inside Japan, and they maintained the respect
and admiration of the army
 Imapct was also felt by those working in industry
and living
 As demand for Japanese output there were
increases in unemplotment and many firms went
bankrupt
 Didn’t experience such severe mass
unemployment
 Wages fell steadily
 Government of Hamaguchi Osachi imlemented
policy which turnded out to be very harmful
 assassination attempt by an ultra nationalist
Significant deflation and serve contraction of economy between
1930-31
 The economy had suffered a brief recession
Political impact
 Prime Minister Tanaka Giichi (and the
Emperor) had attempted to discipline those
responsiblefor the Kwangtung Army’s actions in
Manchuria in 1928.
 The civilian control of government in Japan
was never completely replaced but fro now on,
it was increasingly subject to the dictates of the
ultranationalists and the military expansionists
Strict budget measures resulted in
unpopular following of Hamaguchi
London Naval Reduction Treaty - Hamaguchi attended as a
navy minister – meaning naval expenditure was limited and
5/5/3 was still imposed
 Western governments began to act against
Japanese competition with tariffs and quotas on
Japanese products
 Violence in political life was becoming the
norm, as seen in
the attempt on Hamaguchi’s life,
 Army leaders had heard rumours that
Hamaguchi was planning to abolish the general
staff
 They believed he intended to cut the
militarys direct access to the emperor and he
sought to change military education in schools
 This belief was enough to unite the senior
and younger soldiers in the army – some of
whom believed the army should stage a coup
d’etat against the government
HAMAGUCHI SHOT
 NOVEMBER 14 1930 – Hamguchi shot in an
 He was out of politics for several months but
returned in march of the following year and his
party won
 HOWEVER – he was forced to resign in April
and died from his wounds in August
 immediately after world war I.  WAKATSUKI REIJIRO TOOK OVER PM
 The Kanto Earthquake 1923 + Banking crisis 1927 WAKATSUKI – resigned December 1931
caused distress amongst the population. INUKAI TSUYOSHI – of seiyukai – this was to be the countries
 The collapse of the New York stock market on Wall final attempt at a true party gov
St in October 1929 pushed the American economy  MAY 1932 – ASSASINATED
into depression, which in a few short years had spread
worldwide.
 Within two years, Japanese exports to the US had
fallen 40% while to China they had fallen
 over 50%
 Japan did not experience the mass unemployment
of countries like the United
 States and Germany
 Japan did not experience the mass unemployment
of countries like the United
 States and Germany

No hard resources, very hard to manufacture