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The Rise and Fall of the Industrious State: Why Did Japan’s Welfare State Differ from European-Style Models?

In: Worlds of Taxation

Author

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  • Eisaku Ide

    (Keio University)

Abstract

This chapter explains why the welfare state in modern Japan should be described as the “Industrious State” and discusses how and why its development diverged from that of the European-style model. The Industrious State was based on a model of personal responsibility, supported by a historic ideology extolling the virtues of hard work and savings. The Industrious State was built on the pillars of cuts in income taxes that would return income to workers and of investments in public works that would ensure opportunities for work. In the 1990s, however, the Industrious State was confronted with the collapse of the “bubble economy” followed by a sharp decline in income levels and a sagging savings rate. Since then, Japan has struggled to replace the Industrious State.

Suggested Citation

  • Eisaku Ide, 2018. "The Rise and Fall of the Industrious State: Why Did Japan’s Welfare State Differ from European-Style Models?," Palgrave Studies in the History of Finance, in: Gisela Huerlimann & W. Elliot Brownlee & Eisaku Ide (ed.), Worlds of Taxation, pages 217-243, Palgrave Macmillan.
    • Handle: RePEc:pal:psitcp:978-3-319-90263-0_9
    DOI: 10.1007/978-3-319-90263-0_9
    as

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