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Thread: Japan's Bad Trade

  1. #1
    Southerner Rifleman's Avatar
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    Default Japan's Bad Trade

    http://www.theamericanconservative.c...ans-bad-trade/

    "The fundamental economic issue here is that by pricing high in the protected home market, Japanese automakers can powerfully subsidize their prices abroad. The policy is underpinned both by traditional Japanese cartel dynamics and by governmental “guidance.” Basically, the Japanese consumer unwittingly foots the bill for much of the Japanese industry’s consistently heavy investment in R&D and ever more efficient new production processes. This leaves cartel members free to price abroad at little more than low variable costs (which means they need aim to recover merely the cost of direct labor and immediate inputs such as components).

    The cartel’s profitability is further bolstered by Japan’s so-called sha-ken system of car inspection. This is so rigorous that most Japanese drivers trade in their autos every three years. Choate comments: “Japanese autos, of course, last far longer than three years. But to keep up revenues, the industry has a market of captive customers that keep buying new. Japan is the land of new cars—virtually all Japanese made.”

    Worn down for four decades by such unequal competition, the Detroit companies have been chronically starved of funds to invest in R&D and new production processes. The result is they have gone from leaders to laggards in quality and productivity."



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  3. #2

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    This started in the '70's, it'll get much worse before anything changes..

    I fear we're just now reaping what was sewn in the '70's......What'll happen when the '90's come due?

  4. #3

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    Japan is on QE23 I think?

    It's all a big game between governments and corporations with subsidies. When the Green Theme has lost it's scheme, I'm waiting for the Carbon Tax nonsense to force Aericans to purchase less carbon new vehicles. It's all a 'Theater of Pain' in the racketeering.
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  5. #4

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    I call bullshit.

    The "global market" has been long ago carved up amongst those who promised to buy US debt and allow US military bases in perpetuity.

    GM got $40 billion in the bailout frenzy. You can buy a shit load of R&D with $40 billion, not to mention 5 new plants in China.

    "They" moved manufacturing out of the US because of pollution laws that no longer allowed them to indiscriminately poison the great lakes, etc., but kept their HQs here to get those lucrative federal bailouts and no-bid military contracts.

    As is always the case, the move out of the US was blamed on unions and US labor in general. Truth is, US labor is the most productive sector in the history of the planet by 3 to 1 over any industrialized nation and much higher over China and other 3rd world countries. But, those countries allow the big industrialists to puke in their land, air and water wantonly and with impunity.

    There's much more to it, of course, but the subsidies by governments is just a part of the whole scheme of managed global trade monopolies.

  6. #5

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    Worn down for four decades by such unequal competition, the Detroit companies have been chronically starved of funds to invest in R&D and new production processes. The result is they have gone from leaders to laggards in quality and productivity.
    Now, come on. Detroit has been making crappy quality cars for decades. That is why Japanese-made cars became so popular in the U.S. I just wish I could buy another Honda that was completely made in Japan.
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    Quote Originally Posted by Bossobass View Post
    Truth is, US labor is the most productive sector in the history of the planet by 3 to 1 over any industrialized nation
    Gonna need a source for that. My impression has always been that we're roughly comparable to countries Germany, Japan, Canada, Australia, and other industrialized nations that aren't known for polluting their environment.

  8. #7

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    Quote Originally Posted by LibertyEagle View Post
    Now, come on. Detroit has been making crappy quality cars for decades. That is why Japanese-made cars became so popular in the U.S. I just wish I could buy another Honda that was completely made in Japan.
    Exactly right. US cars were in serious decline in quality in the early 70's, before Japan had more than a toe in the US market. This was partly a result of Federal mandates, partly a result of a unionized labor force that only cared about getting as much pay for as little work as possible, and partly as a result or corporatized management that didn't care about the customers.
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  9. #8

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    They buy new cars every 3 years???

    I have a 21 year old Toyota - she runs so well still *knock on wood *
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  10. #9

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    Quote Originally Posted by Seraphim View Post
    I have a 21 year old Toyota
    I drive a 56 year old Chevrolet....

  11. #10
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    Last edited by Rifleman; 03-05-2013 at 08:41 PM.





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