This article explores the history of Japan's political and economic systems, which is difficult to classify as either socialist or capitalist due to having elements of both. It covers the long history of authoritarian rule and feudalism, followed by the Meiji Restoration in 1868 which saw a shift towards modernisation. It then defines socialism and capitalism before discussing how Japan has adopted a unique blend between the two systems today. Pros and cons are discussed for this type of economic model, which appears to work well for Japan given its population size and level of income inequality compared to other countries.