Page:Economic Reform Policy by Envoy Dodge (Dodge Line).pdf/18

 result of the war but a long term of hardship and self-denial. The nation continuously has been living beyond its means. There has been a general disposition in the Japanese government to accede to any demand to spend more and more and to attempt to spend every source of income more than once. Too much of this spending has not been put to productive use.

Any measurement of the direct and indirect losses resulting from the war will clear show that Japan cannot afford to dissipate capital. It has suffered severe physical loss and damage and economic and financial dislocations. It haas lost its empire and with that has lost great investments and sources of raw materials, production and trade. Also there has been a loss of the influences that empire brought to bear on other contiguous trading areas. Japan's population has been increased by repatriation and concentrated to its homeland. There is a large net gain in population each year. These are serious problems. Their effects reach everywhere and they cannot be quickly or easily overcome.

Any realistic view of the economic problem suggests a rough and rocky road which will severely test the strength, character and loyalty of the people. The economy has travelled the early part of this road in a damaged and unrepaired vehicle but the vehicle and the passengers have been protected from road shocks by a cushion of U.S. aid. It is time the Japanese began to face up to the unalterable facts of their own life and organize themselves to meet their own problems and regain their independence by their own efforts.

A better perspective of the problems of the present situation can be achieved if they are properly related to what the conditions might have been without the benefit of U.S. aid or might become when this aid has to be reduced or withdrawn.

It will require the active and continuous support of every individual in meeting its national problems for this country to regain an independent status in world affairs. U.S. aid only can serve as a stimulant to the efforts of the Japanese people to find the way to develop a self supporting economy as a result of their own labors.