Deflationary pressures?

Henry C.K. Liu hliu at mindspring.com
Sun Jan 19 16:05:01 MST 2003



David Schanoes wrote:

>"I saw the future and it was Japan 12 years ago?"
>
Not quite.  It would be much worse in the US.

Japan, as an Asian culture, places importance on the national economy
and operates as if individuals and companies can only prosper if the
national economy prospers. The US economy operates as a "natural"
calculus of individual survival. To Americans and American corporations,
a national economic boom has no meaning unless the individual unit first
benefits. As markets globalize, this creates problems for management in
both cultural regimes. For Japan, bailouts are normal, while in the US
bailouts, though they occur, are exercised with apologies. When in
trouble, the US economy historically sacrifices quickly the weak and the
small, while the Japanese economy punishes the strong and big gradually.

When the long-overdue US recession hits, Americans will see their faith
in market free enterprise shaken as the Japanese have been losing their
faith in their command economy, despite the fact that the government has
been reasonably effective in insulating the Japanese public from
economic pain.


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