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The Dodge Line

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Abstract

This chapter evaluates the importance of the Dodge Line , which was implemented in early 1949 to stop hyperinflation. The Dodge Line returned the Japanese economy back to the world economy. The Dodge Line was characterized by a balanced budget that would last until the mid-1960s. This tight-money policy crushed all the ideal and “democratic” social security plans devised during the early period of the Allied occupation, but basically continued the prewar medical insurance programs with some revisions. In this sense, the Dodge Line constituted a critical turning point in the development of post-World War II medical insurance in Japan.

Keywords

  • Dodge Line
  • Economic Stabilization Board (ESB)
  • Reconstruction Finance Bank (RFB)
  • Korean War
  • Health Insurance
  • National Health Insurance
  • Supreme Commander for the Allied Powers (SCAP)
  • Public Health and Welfare (PHW)
  • Recommendations on a social security system of 1950
  • Balanced budget

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Notes

  1. 1.

    A cost-of-living index is the change in expenditures that a household has to make to maintain a certain standard of living. Schultze and Mackie (2002)

  2. 2.

    GARIOA and EROA are two US legislative programs in the post-World War II period (EROA was eventually included in GARIOA) authorizing funds for economic relief and reconstruction in occupied countries. From 1947 to 1951, contributions to Japan under these programs totaled about $2.1 billion. Major items included food, fertilizer, petroleum, medical supplies, and nonindustrial raw materials. Some civilian personnel costs were also paid from GARIOA funds. Encyclopedia of Japan (Kodansha).

  3. 3.

    Insurance physicians are those physicians who agree to consult with patients covered by medical insurances.

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Sugita, Y. (2019). The Dodge Line. In: Japan's Shifting Status in the World and the Development of Japan's Medical Insurance Systems. Springer, Singapore. https://doi.org/10.1007/978-981-13-1660-9_8

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  • DOI: https://doi.org/10.1007/978-981-13-1660-9_8

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