Economic change during the meiji peiod
Did you know Japan is a major economic power in the world? This archipelago did not start out like this; it had to undergo many changes to reach what it is today. The economy changed rapidly during the Meiji Period because the government realized they needed to become more modernized in order to compete against Western nations. The government became involved in changing many sectors of Japan including: agriculture, industry, trade, banking, and taxation. These reforms abruptly occurred during the Meiji Period (1868-1912).
Japan’s industry was dramatically transformed, creating a better economy. Some of the reforms included new railroads to join all four major islands, shipping lines, telegraph and telephone systems, and deep water harbors to allow bigger ships. Not only this, but 53 consumer productions were created. Examples include munitions, gunpowder, silk and textile, glass, chemical plants, iron smelters, and spinning mills. The government was involved in these changes as it funded and owned many industries. But after several years, most government owned factories were handed over to private businesses. This happened to help jump start capitalism. This change was crafted by Matsukata Masayoshi. Private businesses, samurai’s, merchants, and families (such as Mitsubishi) all established many factories. The old bakufu tried to maintain old tradition but failed terribly. These important changes occurred in the Meiji period. Japan went through two periods of economic development. First, the Tokugawa shogun was overthrown called the Prewar Japan. Secondly, the Meiji government was founded and Japanese Westernization began. This era was named Postwar Japan. These changes took place because of the 3,000 foreign experts in a variety of specialist fields. The foreign experts transformed English, science, engineering, army, and the navy. Also in the Iwakura Mission, it states that governments can encourage private enterprise and business innovation. As well many Japanese traveled abroad to study Western ways and brought back many new ideas. Japan’s national income doubled, affecting its citizens. After 20 years, the industrial economy expanded rapidly until 1920 with inputs of advanced Western technology. Japan gradually took control of Asia’s market of goods. Additionally, massive migration to industrializing centres came from the countryside. These changes in industry led to innovation and prosperity.
Agriculture in Japan also faced new changes during the Meiji Period. This enlightened thinking encouraged during this period allowed farmers to own the land they worked. They were allowed to move freely and sell their products anywhere. With this change came a 3% land tax imposed on the farmers. In the Edo period, taxes were paid in crops such as rice, but now were paid in money. Taxes were calculated as a proportion of the cash value of the land rather than the actual crop yield. The landowner confirmed by the issuance of land bonds, was liable for the taxes instead of the farmer. The land tax caused many riots. In a result to resolve this, tax was lowered to 2.5% instead of 3%. Many farmers had their land confiscated due to inability to pay taxes. By the end of the Meiji Period 67% of peasant families were forced to tenancy. Agriculture was dominated by a tenant farming system. Families were often driven to pay over half their crops as rent. In an attempt to pay taxes, relatives were strongly influenced to send their wives and daughters to textile mills. Many families had a difficult time making ends meet; to make extra money, daughters were forced into prostitution. The circumstance went downhill when the deflationary Matsukata Fiscal policy developed in 1881-1885. This policy economically lacked rice prices which lead to bankruptcies and rural uprisings against the government. First agriculture cooperatives were established in 1900’s. These served in rural areas as credit unions and purchasing cooperatives. The government and Matsukata were involved in these changes as they created the taxes. Farmers were included since they were directly affected by the changes. Many riots broke out with led to the reduction of taxes. The adjustments started in 1873 and continued to 1900. Hokkaido, Honshu, Shikoku, and Kyushu were where the changes took place as they are where the main farming takes place. The land tax took place to pay for urban development. The changes affected numerous farmers as they had to give up their land and gave Japan more value for the farmland. The changes in agriculture were both positive and negative.
In addition to agriculture and industries, taxation and banking made many modifications. New taxes such as land and a blood tax were established. As previously said, farmers were forced to pay a 3% land tax. The blood tax is described as the military official’s extracting blood of the bodies as of a new conscript. It was usually sold for medicinal purposes. Another tax was created on imported goods. In addition, taxes were now collected by the centralized government instead of the local daimyo. Taxes were paid in cash as before would've been paid in crops. A standardized system had been formed across Japan. The government and Matsukata were involved as they created the taxes. Furthermore Matsukata wanted to reduce government spending, reduce value of printed money, and impose new taxes. These changes had to take place as they needed to raise more money for funds for national income; they also needed to improve the economy and create businesses. The taxes/policies caused many farmers to lose their land and businesses to go bankrupt. A positive outcome was Japan was developing into a capitalist society. The building of banking and reliance on bank funding had been the centre of Japanese development.
Lastly, trade was an economic system that changed during modernization development. The government wanted the people to buy domestic goods rather than foreign products. To ensure this, they placed an import tariff on foreign goods. A tariff like this would be considered a defensive tax. Finally, a capitalist society was fully developed. They had adopted a British and North American mentality towards capitalism. In the Edo Period, the people would trade for other goods but now they would trade and sell their products for money. For example, people worked for wages, not goods and then purchased the goods they wanted with the money they made. Furthermore, the value on printed money was lowered, by Matsukata. These changes happened because they were forced to sign unequal treaties. The citizens of Japan were now able to buy western goods and were encouraged to wear western clothes to work. This was a change than the traditional kimono. Many Meiji leaders and the government gradually influenced these changes.
During the Meiji Period in Japan many changes occurred in agriculture, taxation, banking, trade, and industry. The Meiji Period was all about modernizing and huge changes. For more information on this certain topic, please visit www.JapanEconomicChanges.com .
Article By: Jesse
Japan’s industry was dramatically transformed, creating a better economy. Some of the reforms included new railroads to join all four major islands, shipping lines, telegraph and telephone systems, and deep water harbors to allow bigger ships. Not only this, but 53 consumer productions were created. Examples include munitions, gunpowder, silk and textile, glass, chemical plants, iron smelters, and spinning mills. The government was involved in these changes as it funded and owned many industries. But after several years, most government owned factories were handed over to private businesses. This happened to help jump start capitalism. This change was crafted by Matsukata Masayoshi. Private businesses, samurai’s, merchants, and families (such as Mitsubishi) all established many factories. The old bakufu tried to maintain old tradition but failed terribly. These important changes occurred in the Meiji period. Japan went through two periods of economic development. First, the Tokugawa shogun was overthrown called the Prewar Japan. Secondly, the Meiji government was founded and Japanese Westernization began. This era was named Postwar Japan. These changes took place because of the 3,000 foreign experts in a variety of specialist fields. The foreign experts transformed English, science, engineering, army, and the navy. Also in the Iwakura Mission, it states that governments can encourage private enterprise and business innovation. As well many Japanese traveled abroad to study Western ways and brought back many new ideas. Japan’s national income doubled, affecting its citizens. After 20 years, the industrial economy expanded rapidly until 1920 with inputs of advanced Western technology. Japan gradually took control of Asia’s market of goods. Additionally, massive migration to industrializing centres came from the countryside. These changes in industry led to innovation and prosperity.
Agriculture in Japan also faced new changes during the Meiji Period. This enlightened thinking encouraged during this period allowed farmers to own the land they worked. They were allowed to move freely and sell their products anywhere. With this change came a 3% land tax imposed on the farmers. In the Edo period, taxes were paid in crops such as rice, but now were paid in money. Taxes were calculated as a proportion of the cash value of the land rather than the actual crop yield. The landowner confirmed by the issuance of land bonds, was liable for the taxes instead of the farmer. The land tax caused many riots. In a result to resolve this, tax was lowered to 2.5% instead of 3%. Many farmers had their land confiscated due to inability to pay taxes. By the end of the Meiji Period 67% of peasant families were forced to tenancy. Agriculture was dominated by a tenant farming system. Families were often driven to pay over half their crops as rent. In an attempt to pay taxes, relatives were strongly influenced to send their wives and daughters to textile mills. Many families had a difficult time making ends meet; to make extra money, daughters were forced into prostitution. The circumstance went downhill when the deflationary Matsukata Fiscal policy developed in 1881-1885. This policy economically lacked rice prices which lead to bankruptcies and rural uprisings against the government. First agriculture cooperatives were established in 1900’s. These served in rural areas as credit unions and purchasing cooperatives. The government and Matsukata were involved in these changes as they created the taxes. Farmers were included since they were directly affected by the changes. Many riots broke out with led to the reduction of taxes. The adjustments started in 1873 and continued to 1900. Hokkaido, Honshu, Shikoku, and Kyushu were where the changes took place as they are where the main farming takes place. The land tax took place to pay for urban development. The changes affected numerous farmers as they had to give up their land and gave Japan more value for the farmland. The changes in agriculture were both positive and negative.
In addition to agriculture and industries, taxation and banking made many modifications. New taxes such as land and a blood tax were established. As previously said, farmers were forced to pay a 3% land tax. The blood tax is described as the military official’s extracting blood of the bodies as of a new conscript. It was usually sold for medicinal purposes. Another tax was created on imported goods. In addition, taxes were now collected by the centralized government instead of the local daimyo. Taxes were paid in cash as before would've been paid in crops. A standardized system had been formed across Japan. The government and Matsukata were involved as they created the taxes. Furthermore Matsukata wanted to reduce government spending, reduce value of printed money, and impose new taxes. These changes had to take place as they needed to raise more money for funds for national income; they also needed to improve the economy and create businesses. The taxes/policies caused many farmers to lose their land and businesses to go bankrupt. A positive outcome was Japan was developing into a capitalist society. The building of banking and reliance on bank funding had been the centre of Japanese development.
Lastly, trade was an economic system that changed during modernization development. The government wanted the people to buy domestic goods rather than foreign products. To ensure this, they placed an import tariff on foreign goods. A tariff like this would be considered a defensive tax. Finally, a capitalist society was fully developed. They had adopted a British and North American mentality towards capitalism. In the Edo Period, the people would trade for other goods but now they would trade and sell their products for money. For example, people worked for wages, not goods and then purchased the goods they wanted with the money they made. Furthermore, the value on printed money was lowered, by Matsukata. These changes happened because they were forced to sign unequal treaties. The citizens of Japan were now able to buy western goods and were encouraged to wear western clothes to work. This was a change than the traditional kimono. Many Meiji leaders and the government gradually influenced these changes.
During the Meiji Period in Japan many changes occurred in agriculture, taxation, banking, trade, and industry. The Meiji Period was all about modernizing and huge changes. For more information on this certain topic, please visit www.JapanEconomicChanges.com .
Article By: Jesse