Yasuo Fukuda
Fukuda was born in Takasaki, Gunma, the eldest son of politician (later the 67th Prime Minister) Takeo Fukuda. He grew up in Setagaya, Tokyo, attending Azabu High School and graduating from Waseda University in 1959 with a degree in economics. After university, he joined Maruzen Petroleum (now part of the Cosmo Oil Company). He was only minimally involved in politics over the next seventeen years, working his way up to section chief as a typical Japanese "salaryman". He was posted to the United States from 1962-64. While his father Takeo Fukuda was prime minister from 1976–78, Yasuo became a political secretary. From 1978 to 1989, he was a director of the Kinzai Institute for Financial Affairs, serving as a trustee from 1986 onward.
Post-occupation Japan
Nakasone Yasuhiro, a conservative backed by the still-powerful Tanaka and Suzuki factions who once served as director general of the Defense Agency, became prime minister in November 1982. In November 1984, Nakasone was chosen for a second term as LDP president. His cabinet received an unusually high rating, a 50% favorable response in polling during his first term, while opposition parties reached a new low in popular support. As he moved into his second term, Nakasone thus held a strong position in the Diet and the nation. Despite being found guilty of bribery in 1983, Tanaka in the early-to-mid-1980s remained a power behind the scenes through his control of the party's informal apparatus, and he continued as an influential adviser to the more internationally minded Nakasone. The end of Nakasone's tenure as prime minister in October 1987 (his second two-year term had been extended for one year) was a momentous point in modern Japanese history. Just fifteen months
before Nakasone's retirement, the LDP unexpectedly had won its largest majority ever in the House of Representatives by securing 304 out of the 512 seats. The government was faced with growing crises. Land prices were rapidly increasing due to the Japanese asset price bubble, inflation increased at the highest rate since 1975, unemployment reached a record high at 3.2%, bankruptcies were rife, and there was political rancor over LDP-proposed tax reform. In the summer of 1987, economic indicators showed signs of recovery, but on October 20, 1987, the same day Nakasone officially named his successor, Takeshita Noboru, the Tokyo Stock Market crashed. Japan's economy and its political system had reached a watershed in their postwar development that would continue to play out into the 1990s.