Key Facts
• Morinaga Takuro passed away on January 28, 2025, at age 67.
• His final book, Farewell! Global Capitalism, critiques Japan’s post-war economic systems.
• Two key systems identified: ‘Housing Loans’ and ‘Withholding Tax System.’
• Housing loans centralized funds from rural areas to urban centers.
• Withholding tax system introduced post-WWII, targeting salaried workers and freelancers.
• U.S. Shoup Mission suggested abolishing withholding tax; Japan retained it.
• Japan’s withholding tax differs from U.S. and European models.
• System enabled Japan’s rapid post-war recovery and economic growth.
• Post-bubble collapse, mismanagement under Koizumi’s administration weakened Japan’s economy.
• Tokyo’s centralization of resources was a deliberate government policy.
• Morinaga argued reversing centralization could address population and economic issues.
Summary
Morinaga Takuro’s final work, Farewell! Global Capitalism, highlights Japan’s post-war economic strategies, focusing on the ‘Housing Loan’ and ‘Withholding Tax System’ as pivotal revenue mechanisms. Housing loans centralized funds in urban areas, while the withholding tax system ensured seamless tax collection from workers. Despite suggestions from the U.S. Shoup Mission to abolish it, Japan retained the system, which differed from Western models by simplifying tax filing for salaried workers. These systems fueled Japan’s rapid recovery and economic growth post-WWII but contributed to long-term economic stagnation after the bubble collapse. Morinaga criticized the deliberate centralization of resources in Tokyo and advocated for policies to reverse this trend, emphasizing the need for bold leadership to address Japan’s economic and demographic challenges.
