Why did the Liberal-Democratic Party support low taxes and government subsidies for industry?

The Liberal-Democratic Party (LDP) of Japan supported low taxes and government subsidies primarily to foster a favorable environment for business and to drive the nation's economic growth.1

Following its formation in 1955, the LDP worked closely with bureaucrats, bankers, and the business community to oversee Japan's recovery from World War II and its transformation into an economic superpower. By providing subsidies and implementing protectionist trade policies, particularly from the 1950s through the 1970s, the party aimed to accelerate industrial development. These close government-business ties became so integral to the country's domestic economic expansion that they were often characterized in the West as "Japan Incorporated".2341

Ultimately, the party's focus on economic growth was central to its ideology, as it sought to return Japan to world prominence while maintaining the financial support of the business and banking sectors.3