Capital as Will and Imagination: Schumpeter’s Guide to the Postwar Japanese Miracle

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233 ABBREVIATIONS OF COMPILATIONS, ARCHIVES, JOURNALS, AND REFERENCE WORKS ESJ Economic Planning Agency (Keizai Kikakucho). Economic Survey of Japan [Economic White Paper], various years. HSJ Somucho Tokeikyoku (Statistics Bureau, Management and Coordination Agency), ed. 1988. Nihon choki tokei soran. [Historical statistics of Japan]. 5 volumes. Tokyo: Nihon Tokei Kyokai (Japan Statistical Association). ITZ Ishibashi Tanzan zenshu [Collected works of Ishibashi Tanzan]. 15 vols. Tokyo : Toyo Keizai Shinposha, 1970–72. JMDP Joseph M. Dodge Papers, Burton Historical Collection, Detroit Public Library . Abbreviated by box and file number; for example, “Japan-1949-1” is box “Japan-1949,” file 1. LTES Choki keizai tokei, suikei to bunseki [Estimates of long-term economic statistics of Japan since 1868]. Ed. Ohkawa Kazushi, Shinohara Miyohei, and Umemura Mataji. 14 vols. Tokyo: Toyo Keizai Shinposha, 1965–88. NGHS Nihon Ginko hyakunenshi [One-hundred-year history of the Bank of Japan]. 6 vols. Tokyo: Nihon Ginko Hyakunenshi Iinkai, 1982–86. NKS-SZ Nihon kin’yushi shiryo, Showa zoku hen [Materials on Japanese financial history, Showa era continued]. Ed. Nihon Ginko Kin’yu Kenkyujo. 29 vols. Tokyo: Okurasho Insatsukyoku, 1978–96. OE The Oriental Economist [English-language publication of Toyo keizai shinpo]. Tokyo. SCAP Supreme Commander for the Allied Powers (U.S. occupation administration ). See note on U.S. occupation archives below. SZS-SK Showa zaisei shi: Shusen kara kowa made [History of public finance in the Showa period: From the end of the war to the peace treaty]. Ed. Okurasho Showa Zaiseishishitsu [Ministry of Finance, Showa Financial History Editorial Office]. 20 vols. Tokyo: Toyo Keizai Shinposha, 1976–82. TKS Toyo keizai shinpo [The oriental economist]. [Japanese-language ed.] Tokyo. U.S. OCCUPATION ARCHIVES U.S. occupation (SCAP) records held in the National Archives are in Record Group 331. They are abbreviated by SCAP section, box number, and folder number. For example, SCAP/GS 2275E-8 would be SCAP, Government Section, box 2275E, folder 8. CIE = Civil Information and Education Section; ESS = Economic and Scientific Section; GS = Government Section. Microfilmed copies of the SCAP records are also held in the Kensei Shiryoshitsu in the National Diet Library, Tokyo. INTRODUCTION Epigraph: Goethe, Faust, pt. 2, act 1, lines 4929–4930 (translation by Philip Wayne 1959: 33). Notes 234 NOTES TO PAGES 1–14 1. Crafts and Venables (2003) analyze Asian industrialization as Phase III of the global industrialization process. 2. Machlup 1943; chapter 3 in this book. 3. Okita 1957: 36. 4. Young Schopenhauer, through his mother’s mediation, became part of Goethe’s circle at Weimar, though Goethe rejected Schopenhauer’s solipsism. A line also connects Schopenhauer (and Faust) to the stormy ruminations of Friedrich Nietzsche, and onward to Joseph Schumpeter’s heroic visions of the entrepreneur and the cycle of “creative destruction ” (Brown 1997; Reinert and Reinert 2006). 1. THE REVOLUTION IN PRICES Epigraphs: Schumpeter 1954b [1918]: 119; Ouchi in Ichimada and Ouchi 1949: 9–10; “Budget Analysis by Jerome B. Cohen,” July 15, 1949, Japan-1949-1, JMDP. Cohen repeated this point in Cohen 1949: 85 and 1958: 84. 1. Binswanger 1994. Binswanger, a senior professor of finance, has brought Goethe back into discussion in the aftermath of the 2007 bubble, e.g., in conversation with his Ph.D. student Josef Ackermann, chief of Deutsche Bank; see Josef Ackermann and Hans Christoph Binswanger, “Es fehlt das Geld. Nun gut, so schaff es denn!,” June 30, 2009, Frankfurter Algemeine Zeitung, FAZ.net. Notably, Binswanger’s work was translated into Japanese before it was translated into English. Berman 1982 includes a classic essay on “Faust the developer.” 2. “Zu wissen sei es jedem, der’s begehrt:/Der Zettel hier ist tausend Kronen wert./Ihm liegt gesichert, als gewisses Pfand,/Unzahl vergrabnen Guts im Kaiserland.” Faust, pt. 2, act 1, ll. 6057–6060, my translation. 3. Binswanger 1994, and Taylor’s notes to his translation, Goethe 1876: 310–313. Law’s story has been well told so many times that it is hard to know where to begin. Larry Neal has offered a series of modern economic-historical analyses. Philip Mirowski (1981, 1985) has traced the origin of major business cycles (which Schumpeter called Juglar cycles ) to the 1720 bubble in England. 4. Cantillon 1931; Schumpeter 1954c: 222; Murphy 1986. Schumpeter said that Cantillon made “the first systematic attempt to work over the whole field of economics” and that he was, “so far as I know, the first to use the term entrepreneur” (Schumpeter 1954a: 29–30; 1954c: 555). 5. Metzler 2006b. My book Lever of Empire...