On "Princes of the Yen", and the challenging message the author had for free-marketeers I'v given some thought to the problem I posted in #96 https://www.silverstackers.com/foru...ern-monetary-theory.93079/page-5#post-1110758, How did the post-War Japanese planners manage to create such wealth when the majority of economic theories observe that the best form of wealth creation happens within a free-market? I've got an idea about it and would appreciate some feedback, as long as you don't disagree. If the author's thesis is accepted, then post-war Japanese economic planners applied a wartime economic model in order to rebuild the nation. Instead of factories making bullets or Zeros, they made washing machines and trains. The wartime factory model is highly effective when applied to the manufacturing industry ie supply and control the capital input, specify the manufactured good that is the planned output and hey presto you've got a million Sanyo washing machines! Sell those washing machines domestically to the workers (effectively recycling much of the injected cash) and overseas at a cheaper price to foreigners. But eventually that model was doomed to fail the needs and desires of the more prosperous Japanese consumer because whilst factories are great at making tractors, or Game Boys, they're lousy at producing the more sophisticated (social) goods that the more discerning and wealthier consumer demands eg health, education, the environment, entertainment etc. At some point the complaint Japanese factory worker, empowered with more wealth would no longer want to work in a factory, or spend their free time filling their new washing machines with dirty overalls but would yearn for holidays, sporting events, artwork and quiet walks through misted mountains. And their kids would aspire to a different life to the one their parents experienced, and their parents would also share and probably encourage those same aspirations. It's at that point that manufacturing gets offshored and it's at that point that a wartime economic model loses its capacity to meet the needs of the people. And that leaves the free-market as the best alternative in meeting those new needs.