By United Nations Publications
ISBN-10: 142947971X
ISBN-13: 9781429479714
ISBN-10: 9211011329
ISBN-13: 9789211011326
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Sample text
The idea was to keep the overall price level at 8 times the 1939 level, which meant that the prices of fresh foodstuffs and sundry household items were reduced to a third and a half of the prevailing levels. The unique feature of this system, compared to the previous efforts, was that it set a structure of prices rather than individual prices isolated from each other. The prices of goods that were not part of this structure, however, were 21 In contrast, the business community back in the United States criticized the initial program of the GHQ/SCAP as “a pilot plant for a planned economy” (Bronfenbrenner 1975).
29 The War Indemnity Special Measure Law was enacted on 18 October 1946 and the Capital Levy Law on 11 November 1946. In nominal terms, the capital levy was a success. About 80 percent of the anticipated yield was declared by taxpayers’ original assessment (Shavell 1948). Occupation authorities, however, thought that the delay (with ultimate enactment in the fall and collection in March 1947) had diminished the real value of the revenue through inflation and benefited the interests of large industrial groups.
The GHQ/SCAP had attempted to remove Ishibashi from public office beginning in June 1946 when officials saw him display “in his first few weeks in office . . an underlying lack of harmony with known policies of the Supreme Commander on financial and economic problems under the occupation” (SCAP/Government Section memo, dated 26 June 1946). This plan was not put into action immediately to avoid undermining the newly formed cabinet of Prime Minister Yoshida. By May 1947, Yoshida may have accepted the expulsion of Ishibashi, viewing his rising political influence as a personal threat (Masuda 1998b).