How Japan Avoided the Great Depression: Military Spending & Trade Insulation

Two factors shielded Japan from the worst of the 1930s global depression:

1. Military Expansionism: Aggressive conquest of resource-rich Manchuria (1931) and China (1937) stimulated heavy industry, created captive markets, and secured raw materials (coal, iron, soy). Military spending soared from 15% to ~70% of budget.
2. Limited Trade Dependence: Japan's economy was less integrated into global finance/trade than the U.S. or UK. High tariffs, zaibatsu-controlled domestic markets, and state-directed credit insulated it from the collapse of international demand and credit.

This "escape" came at horrific human cost in Asia and led to total war.