ABSTRACT
During 1930-32, Japan experienced the deepest economic downturn in its modern history. This depression had far more serious consequences than the 1927 financial crisis on all aspects of Japanese life including economic, social and political. The Showa Depression wreaked havoc on Japanese society. Cartelization and rationalization were promoted under official guidance. As free markets seemed to deepen the depression, mutual agreements on output restrictions were adopted. The Seiyukai was established in 1900 by the union of Ito Hirobumi, a leading politician and the first Prime Minister of Japan, and former opposition parties that decided to cooperate with the government. From 1931 to 1937, Japanese politics was gradually overtaken by the military. Many bloody incidents occurred, each undermining the foundation of party politics and democratic government. The military leaders thought that the war with China would be short. But in reality, it lasted for eight years.
