Part 3/11:
Key reforms included complete demilitarization, downgrading the Emperor to a figurehead role, and the introduction of a new constitution that renounced war. The Allied forces also targeted powerful industrial groups known as Zaibatsu, believing that they had played a major role in Japan's aggressive militarism. They enacted antitrust laws, promoting competition by forcing the sale of significant portions of Zaibatsu-owned shares and enhancing worker rights.
Despite these reforms, Japan faced rampant inflation and low productivity, leading to significant food shortages. As tensions of the Cold War escalated, the U.S. changed its strategy, aiming to transform Japan into a beacon of capitalism in Asia and a bulwark against communism.