History of Japan Episode 293 - What Goes Up, Part 4
Jun 14, 2019
The podcast explores the collapse of Japan's economic bubble, highlighting the psychological drivers behind unsustainable growth. It delves into the Recruit scandal, revealing corruption that shattered public trust. Political instability is also examined, with frequent leadership changes and scandals exacerbating the crisis. The influence of the Bank of Japan's policies and the internal dynamics with the Ministry of Finance are discussed, showcasing the complexity of the financial turmoil and the conflicting responses from leaders amidst growing inflation concerns.
AI Snips
Chapters
Books
Transcript
Episode notes
Recruit Scandal Bribery Example
- Recruit Corporation gifted shares of its subsidiary Cosmos to powerful leaders before going public.
- These leaders made about 66 million yen, over $300,000, revealing systemic corruption under gift-giving traditions.
Iron Triangle Corruption Unveiled
- The Recruit scandal exposed corruption between politicians, businessmen, and bureaucrats called the Iron Triangle.
- This damaged a key relationship that fueled Japan's post-war economic growth, weakening trust and cooperation.
Growing Greed Undermines System
- An important cause of the economic issues was politicians and bureaucrats demanding larger kickbacks.
- Greedy demands reached as high as 10% of contract values, far beyond the previously accepted 3%.
