Explanation of "Aggregate Supply Curve moves right"

Theory is theory, not reality. Theory is a means of discovering problems hidden in reality. What I will say next is my hypothesis. If there is a premise of fair competition, GDP will increase if capital investment increases. My hypothesis is that in the case of Japan, GDP will not increase or will be very limited. This is because fair competition is very limited. The reason is the intervention of politicians. Politicians flock to places where big money moves. It may be similar to the image of land sharks flocking to real estate transactions during the bubble era. Under the long-term administration for 10 years,  the platform that guarantees fair transactions was completely destroyed. Homicides are concealed as suicides, and rapists continue to work. A huge amount of public money is invested, and the money disappears at a paper company in the name of a politician in the chain of subcontractors and sub-subcontractors, but they are not pursued.  The IT field, which is the fastest growing industry today, is called IT general contractor. It reminds me of the construction industry during the high-growth period. They close their technology and share profits  with each other. As a result, Japan’s IT technology has fallen behind. Most of Japan’s policies have failed since the war. You can see it clearly if you look at agricultural policy, energy policy, and Fukushima accident. The industrial policy of the high-growth period is often cited as a rare success story, but I think the reality is a little different. High economic growth started from the steel industry. It started from a private steel company’s capital investment. The Ministry of International Trade and Industry at that time opposed it. It was a capital investment that far exceeded the Japanese market. They thought it would cause confusion in the world steel market. That’s exactly what happened. The US-Japan steel friction and automobile friction followed. America stuck to open-hearth furnaces that were pre-World War II equipment. Because they were still usable. Japan has the latest blast furnace. And it’s huge. And it’s integrated production, so final products are produced. It had overwhelming competitiveness in price and quality. This was used for automobiles and led to the competitiveness of automobiles. This situation is described in detail in David Halberstam’s “The Reckoning”. Post-war high growth is often said to be the result of MITI’s industrial policy, but I think it lies in private free (shaking off political intervention) capital investment. In fact, it’s not that simple. Another perspective is given by Yoshihiko Uchida’s paper. I read something that was in his collection of essays somewhere, so I can’t name the book. According to him, Japan’s economic development since the Meiji era has been achieved in the midst of a conflict between “power workers” and “connection workers”, with “power workers” barely gaining control. “Power workers” are “human types” who think and act rationally and are capable of promoting economic development. He extracted two types from novels written by Soseki Natsume and Futabatei Shimei. The characters in their novels are students who hang out in Hongo area, so they are probably reserve forces for bureaucrats, journalists, and employees of large companies. Currently his “connection type” has won an overwhelming victory in the village of bureaucrats, media, and large companies. I think that brought about this economic stagnation. I hope for the rise of business people who resolutely refuse political intervention.

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