Where did Japan go wrong?

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3. June 2010, 15:53:31

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jax

Posts: 7471

Where did Japan go wrong?

The big Asian bugbear of the 1980s was Japan. Japanese electronics were cheaper and better than the American or European, the production methods were superior, the workers more productive, reliable and lived longer. They were not merely competing America and Europe to the ground, they were buying them up.

China is the bugbear of the 2010s. That were to be expected. But for a time traveller from the 1980s the surprise would be how thoroughly Japan has disappeared from the list of daily worries. Why is that?

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3. June 2010, 16:58:46

Krake

Posts: 3130

Globalization has winners and losers. China is the big winner so far.
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3. June 2010, 17:46:39

Museatlantis

Founder Of The Museatlantis Corporation

Posts: 1737

Everyone gets a chance. Before it was Japan now its China.
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3. June 2010, 18:06:00 (edited)

arghwashier

Posts: 1333

Easy, the renminbi is tremendously underappriated and contrary to popular believe (also confusing many economists including those working for the chinese government ) this is very good for us and very bad for the chinese: it's almost like the chinese are giving everything away to us. (this situation might be favorable for chinese exporters but is bad for the rest of the chinese, there's just a lot less stuff available in China for them and the exporters have the money to buy the few things left)



3. June 2010, 18:19:51

Jaybro

Sir James

Posts: 17428

Personally, I never saw Japan as somehow special, although it certainly made an amazing turnaround following WWII, and I certainly don't see China as such now.

How do you measure whatever it is that you base your observations on? My guess was that whatever it is that made Japan a dynamic, resourceful, successful country is still there. China is coming of age internationally, but it has more than miles to go. Much of the junk that my grandchildren play with comes from China, as does much else. However, places such as Thailand are notable junk producers.

In terms of personal national income, China is far down the list and will be there for a long time. Japan is much higher. The US is above both.

In terms of innovation, check out the following:
http://www.nationmaster.com/graph/eco_inn-economy-innovation
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3. June 2010, 19:21:57

Macallan

Deviant from beyond the stars

Posts: 50590

Originally posted by Jaybro:

Personally, I never saw Japan as somehow special, although it certainly made an amazing turnaround following WWII, and I certainly don't see China as such now.


The amazing turnaround happened a bit earlier - they went through a rapid transition from a feudal to an industrial society in the late 1800s / early 1900s. After WWII they only shifted their priorities away from the military and empire building.
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3. June 2010, 19:24:15

grysmn

Posts: 1973

Originally posted by jax:

The big Asian bugbear of the 1980s was Japan. Japanese electronics were cheaper and better than the American or European, the production methods were superior, the workers more productive, reliable and lived longer. They were not merely competing America and Europe to the ground, they were buying them up.


With the exception of buying them up, What is up with the past tense? Japan following it's military escapade, transitioned into and competed in a economic war. Japan played its games to gain advantage over its competitors. Around the 80's it's previous strategy was turned turned disadvantage for further development. For example due to market manipulation the imperial palace was worth four times the value of California and yet it could not produce a return as an investment. In comparison California is one of the major world economies in terms of production. The value of the Imperial Palace in Tokyo was artificial, while the value of California was realistically appraised. The lost 90's was spent adjusting Japans value into a more realistic valuation, this adjustment is still going on. Sort of like the Netherlands tulip collapse centuries ago. Japan is one of the major space players and plans to explore the moon with robots. Japan modernized and is respected, accepted and treated as an equal of any first world economy.

Originally posted by Jaybro:

My guess was that whatever it is that made Japan a dynamic, resourceful, successful country is still there.


Not a guess it is a fact.

Originally posted by Jaybro:

China is far down the list and will be there for a long time. Japan is much higher. The US is above both.


Exactly, Furthermore the question is will China be a team player like Japan or will the economic war transition into a military war.

3. June 2010, 19:25:23

RekaG

{Osaka}

Posts: 303

Sad thing is that, China wants to rule us and they already sort of do.
Sometimes when you have viewed problems from both sides, all you see is different issues but the same problem.

3. June 2010, 20:02:58

Frenzie

Posts: 15547

Originally posted by Macallan:

Originally posted by Jaybro:

Personally, I never saw Japan as somehow special, although it certainly made an amazing turnaround following WWII, and I certainly don't see China as such now.


The amazing turnaround happened a bit earlier - they went through a rapid transition from a feudal to an industrial society in the late 1800s / early 1900s. After WWII they only shifted their priorities away from the military and empire building.

In all fairness to them though, they weren't exactly your average feudal society.
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3. June 2010, 20:07:59

Macallan

Deviant from beyond the stars

Posts: 50590

Originally posted by Frenzie:

Originally posted by Macallan:

Originally posted by Jaybro:

Personally, I never saw Japan as somehow special, although it certainly made an amazing turnaround following WWII, and I certainly don't see China as such now.


The amazing turnaround happened a bit earlier - they went through a rapid transition from a feudal to an industrial society in the late 1800s / early 1900s. After WWII they only shifted their priorities away from the military and empire building.


In all fairness to them though, they weren't exactly your average feudal society.


If by 'average' you mean the holy roman empire, which lacked shoguns and self-crippling isolationism wink
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FNORD14. Wipe thine ass with what is written and grin like a ninny at what is Spoken. Take thine refuge with thine wine in the Nothing behind Everything, as you hurry along the Path.
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3. June 2010, 20:12:08

Frenzie

Posts: 15547

All that fuss about recreating Charlemagne's empire. Maybe they should've spent their time a little more constructive so I'd have my freaking personal spacecraft.
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3. June 2010, 20:22:13

Macallan

Deviant from beyond the stars

Posts: 50590

Originally posted by Frenzie:

All that fuss about recreating Charlemagne's empire. Maybe they should've spent their time a little more constructive so I'd have my freaking personal spacecraft.


Yeah, instead they ended up with a backwards mess of petty kingdoms that had to be beaten into kinda-sorta shape by the most backwards of them all right
In a related note, you evidently played too much Civilization left
Equal opportunity blasphemist and insultant.

FNORD14. Wipe thine ass with what is written and grin like a ninny at what is Spoken. Take thine refuge with thine wine in the Nothing behind Everything, as you hurry along the Path.
THE PURPLE SAGE, HBT; The Book of Predictions, Chap. 19

3. June 2010, 20:32:32

Moderator

jax

Posts: 7471

Originally posted by Jaybro:

Personally, I never saw Japan as somehow special, although it certainly made an amazing turnaround following WWII, and I certainly don't see China as such now.

To me Japan is titillatingly different. My experience with the Chinese is in comparison very normal, Hyperamericans on the Asian subcontinent if you wish.
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3. June 2010, 20:49:53

RekaG

{Osaka}

Posts: 303

Originally posted by jax:

Originally posted by Jaybro:

Personally, I never saw Japan as somehow special, although it certainly made an amazing turnaround following WWII, and I certainly don't see China as such now.

To me Japan is titillatingly different. My experience with the Chinese is in comparison very normal, Hyperamericans on the Asian subcontinent if you wish.

O_o hyperamericans...

If anybody was wondering, I was talking about the chinese government. There people okay but their government is a bit you know....
Sometimes when you have viewed problems from both sides, all you see is different issues but the same problem.

3. June 2010, 23:46:13

MXB2001

Slave to Cats

Posts: 69

Originally posted by Macallan:

Originally posted by Frenzie:

All that fuss about recreating Charlemagne's empire. Maybe they should've spent their time a little more constructive so I'd have my freaking personal spacecraft.


Yeah, instead they ended up with a backwards mess of petty kingdoms that had to be beaten into kinda-sorta shape by the most backwards of them all :right:
In a related note, you evidently played too much Civilization :left:



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4. June 2010, 01:02:49

Macallan

Deviant from beyond the stars

Posts: 50590

Originally posted by MXB2001:

Originally posted by Macallan:

In a related note, you evidently played too much Civilization left


You can _never_ play too much Civ. :-)


I can stop any time I want right
Equal opportunity blasphemist and insultant.

FNORD14. Wipe thine ass with what is written and grin like a ninny at what is Spoken. Take thine refuge with thine wine in the Nothing behind Everything, as you hurry along the Path.
THE PURPLE SAGE, HBT; The Book of Predictions, Chap. 19

4. June 2010, 06:11:46

Frenzie

Posts: 15547

Originally posted by Macallan:

Yeah, instead they ended up with a backwards mess of petty kingdoms that had to be beaten into kinda-sorta shape by the most backwards of them all right

In a related note, you evidently played too much Civilization


lol In my experience what you conquer at the very beginning of the game may have major repercussions thousands of years later, but trying to conquer anything later on just drags you down scientifically and colonially. Until the modern era - that's when things get wild. p
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4. June 2010, 06:48:41

Macallan

Deviant from beyond the stars

Posts: 50590

q.e.d. lol
Equal opportunity blasphemist and insultant.

FNORD14. Wipe thine ass with what is written and grin like a ninny at what is Spoken. Take thine refuge with thine wine in the Nothing behind Everything, as you hurry along the Path.
THE PURPLE SAGE, HBT; The Book of Predictions, Chap. 19

4. June 2010, 08:31:51

Frenzie

Posts: 15547

Oy!
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4. June 2010, 16:32:27

Thabotizz

Strange enough... not complicated!

Posts: 848

lol
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4. June 2010, 22:02:19

street_spirit

Workers of the world unite!

Posts: 2499

Capitalism will look for the cheapest labour, no rich nation can provide as cheap labour as the third and developing world (aside from the prison population in america...), one big race to the bottom, full proof! rolleyes

5. June 2010, 00:02:35

thedawgfan

Posts: 11595

Originally posted by street_spirit:

Capitalism will look for the cheapest labour, no rich nation can provide as cheap labour as the third and developing world (aside from the prison population in america...), one big race to the bottom, full proof! rolleyes


And how, pray tell, would Socialists go about it all? sherlock
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5. June 2010, 00:55:03

Redem

In lieu of something witty.

Posts: 2511

He is correct, poor nations provide cheap labour and set the standard for the "race to the bottom" in unskilled labour. This same race means that within a given economic free area (say, the US or the EU) those with the lowest employment standards or corporate taxes are more attractive to businesses due to a lower cost of operations. Leading to another race to the bottom.

Whether this is a good thing or not depends on your point of view. From the perspective of workers, it's bad, from the perspective of consumers, it's great. Everyone wants something for cheap, but doesn't want their job to be outsourced to somewhere where they pay people in pennies per day. (As China and India improve their education systems this is becoming more and more likely as more jobs can be handled in those areas. (India trains up a lot of computer programmers, eager to grab their share of the world's intellectual capital, so it no longer is limited to unskilled labour)
This is a problem for everyone, as they rely on us being wealthy enough to hire them, and we rely on us being employed to make us wealthy. I'm not sure how that is going to play out in the end.
This is another "market failure", but that term doesn't explain it properly. Worse, efforts to combat it often have their own detrimental effects that are as bad or worse than the problem they're intended to solve. (Stifling innovation and economic development in the 3rd world, or worse, stifling their ability to stop being 3rd world and join us in the wealthy world)

This is not a problem that has been solved despite the rhetoric of the free marketeers or the psuedo-communists. We do not know how to make the system better than it is now.

Japan, their biggest problem is that they have sacrificed well paying jobs for profitable businesses. Replacing workers with robots is profitable, but it damages the economy of the nation as more people are unemployed. And this trend will continue as robots become more and more useful.
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5. June 2010, 09:21:07

Frenzie

Posts: 15547

Originally posted by Redem:

Japan, their biggest problem is that they have sacrificed well paying jobs for profitable businesses. Replacing workers with robots is profitable, but it damages the economy of the nation as more people are unemployed. And this trend will continue as robots become more and more useful.


Maybe the problem will be solved once robots can provide all of us with the standards required for living so we can focus on whatever we want without having to worry about money? Just think how much more productively you could spend your time without having to work.
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5. June 2010, 10:46:17

arghwashier

Posts: 1333

Oh brother, luddites are still around:
http://en.wikipedia.org/wiki/Luddite

Don't people ever learn the broken window fallacy, when laborers in a certain industry are replaced by machines (or cheap labor from other countries), these laborers are now available to produce other (more luxury) goods and services and the world is better of because there are more goods and services available to everyone.



5. June 2010, 12:28:22

Jaybro

Sir James

Posts: 17428

Originally posted by Frenzie:

Maybe the problem will be solved once robots can provide all of us with the standards required for living so we can focus on whatever we want without having to worry about money? Just think how much more productively you could spend your time without having to work.


I'm already there. But not good at productively using time. My posting here is ample proof of that.

Of course, that's just me.
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5. June 2010, 12:34:29

Jaybro

Sir James

Posts: 17428

Originally posted by arghwashier:

these laborers are now available to produce other (more luxury) goods and services and the world is better of because there are more goods and services available to everyone.


Isn't that called the Jabba Scenario?
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8. June 2010, 14:26:15

street_spirit

Workers of the world unite!

Posts: 2499

Originally posted by thedawgfan:

Originally posted by street_spirit:

Capitalism will look for the cheapest labour, no rich nation can provide as cheap labour as the third and developing world (aside from the prison population in america...), one big race to the bottom, full proof! rolleyes


And how, pray tell, would Socialists go about it all? sherlock



nationalise the infrastructure of course then there would be no need to make a profit. This would firstly help the environment as you could centrally plan the building of stuff so you don't have the luducriousity of it actually being cheaper to fly stuff from one end of the world and back and such like and ultimately without profit you'd cancel out the gains of out sourcing anyway.

8. June 2010, 15:20:50

e-berlin

e-berlin

Posts: 69

Originally posted by Museatlantis:

Everyone gets a chance. Before it was Japan now its China.



...and the next one will be India.

9. June 2010, 04:07:29

leftwing

Banned user

s

Originally posted by arghwashier:

Oh brother, luddites are still around:



The Luddites were a social movement of British textile artisans in the nineteenth century who protested – often by destroying mechanized looms – against the changes produced by the Industrial Revolution, which they felt was leaving them without work and changing their way of life. They have been proven right of course, we now have the oil spill and other pollution problems as capitalism churns out a glut of useless technology which will soon choke a gullible population.

9. June 2010, 07:44:57

Moderator

jax

Posts: 7471

And more on topic, the product quality of the early machines was shoddy, so not only were the products cheaper, they were also poorer. In other words this was the same kind of change as when people decades ago complained about cheap imports from Japan (these days China).

Of course in time the quality improved, so these days the factories do not just produce quicker and cheaper, factory-made goods are better than artisan-made goods.
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10. June 2010, 01:17:08

leftwing

Banned user

Originally posted by jax:

factory-made goods are better than artisan-made goods.



All the skilled artisans have gone! The Apple I-POD is high on my list of factory produced useless technology, demonstrating the gullible public IMHO.

10. June 2010, 07:40:13

Frenzie

Posts: 15547

Originally posted by leftwing:

All the skilled artisans have gone!


Not all of them, but it's now a niche thing for very rich people only. And to some extent they may also have gone from any single particular country and you'll have to look EU-wide for them.

Originally posted by leftwing:

The Apple I-POD is high on my list of factory produced useless technology, demonstrating the gullible public IMHO.


An iPod was good a decade ago, but these days there are certainly better options. I think Sony's players are really good in the sound quality department (including the cheaper ones), but they're somewhat limited in formats. Not any more limited than Apple's, though.

Besides, who wants to pay extra plus waste energy on a 50 inch touchscreen? My battery lasts for over 30 hours (up to about 40). Sure, Apple claims similar things, but you pay extra for the giant screen plus the higher capacity battery. Plus it remains to be seen whether one actually obtains such battery life in actual usage.
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10. June 2010, 09:47:19

Moderator

jax

Posts: 7471

‘Just do it’ is no mantra for Japan

Originally posted by Financial Times:

It is commonly stated of Japan that everybody knows what has to be done. All that is needed is a leader with the guts to do it. This is a thesis largely devoid of merit.

Naoto Kan, the 16th prime minister in two decades, faces pretty much the same roll-call of problems confronted by his string of mostly short-lived predecessors. The economy is stuck in deflation, public debt is rising, the population is ageing and, more than 60 years after the war, Japan has still not properly defined its place in the world.

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10. June 2010, 14:12:38

Jaybro

Sir James

Posts: 17428

Originally posted by jax:

‘Just do it’ is no mantra for Japan


Following up on that piece, I'm led to a question about the threat that China poses.

Does it pose one at all? To whom?
A thimbleful of neutron star material would weigh more than 500 million tons. How long is that in Earth years?

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