ABSTRACT
The Dodge line was "one of the greatest turning points in the history of the postwar economy," touching the issue of the postwar relationship between economic development and democracy. The basic thrust of initial occupation policy toward the defeated Axis powers involved rooting out prewar militarism and building peaceful, democratic nations. On September 2, 1945, with Japan's signing of a surrender document, General Douglas MacArthur's United States occupation of Japan began. It continued until the San Francisco Peace Treaty came into effect on April 28,1952. United States policies went through several distinct phases in almost seven years of occupation. The defeat of the Axis forces led to military occupation by the Allied powers and to the eradication of fascist political and social structures in the defeated countries. The theories of 1945, 1946, and 1947 perceive similar changes in occupation policy and in the domestic Japanese reverse course. The Korean War gave further impetus to the "reverse course."
