BookTitleToyota Tsusho 70-Year History

Summary

Toyota Tsusho 70-Year History

IntroductionThe State of the TimesSection 1 A Period of Rapid Economic Growth1 The Special Procurement EconomyThe postwar recovery that began in 1945 was slowed by acute shortages ofmaterials and resources, and the deflation and economic stagnation continued eveninto 1950.However, thanks to a special procurement economy in the early 1950’s theJapanese economy made a rapid recovery, and by 1953 it had exceeded prewarlevels of production. A 1956 white paper on the economy featured the famousphrase,“The post-war period is now over.”“The post-war period is now over”Ginza, Tokyo, in 1956Photo: Yomiuri Shimbun / AfloPeople gathered around a color TV during theIzanagi BoomPhoto: Mainichi Shimbun / Aflo2 The Beginning of Rapid Economic GrowthAlthough there was a short recession in the mid-1950s, the economy turnedaround in 1955 and entered a period of expansion. Exports grew, and internationaltrade balance improved rapidly. Supported by a recovery of capital investment,production also increased. It was the beginning of a period of rapid, unprecedentedeconomic growth.In 1956, the economy reached an annual growth rate of 10%with capitalinvestment as the main source of demand. Long-term economic expansioncontinued until 1957. This was the so-called Jimmu Boom, named becausenothing like it had been seen since the reign of Emperor Jimmu, the legendary firstemperor of Japan, said to have ruled in the 7th century BCE. There was a slightdecline after that, but 1958 saw the beginning of the Iwato Boom, which eclipsedthe Jimmu Boom, and this was in turn eclipsed by the Izanagi Boom, whichcontinued for 57 months beginning in 1965. By 1968, Japan had overtaken WestGermany to become the world’s second-largest economy (based on GNP).Over the long term, the country achieved an annual economic growth rate of10%, and as real wages increased the standard of living of the citizens did too.This was symbolized by how the three“must-have”household items changedwith each new era. In the 1950s, these were a black and white TV, a washingmachine, and a refrigerator, but by the 1960s they had changed to a color TV, anair conditioner, and a car (the“3Cs”).In addition to the significant change that rapid economic growth brought tothe structure of the Japanese economy, it also brought significant change to thelifestyle of the people from the 1950s through the 1970s.One of the three must-haves: a carPhoto: Mainichi Shimbun / Aflo48