NetNews Usenet Archive 1993 #3/NN_1993_3.iso/spool/rec/autos/32860

Text File | 1993-01-28 | 3.5 KB | 78 lines

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From: [e-mail] (Don Clayton)
Subject: Re: Politics of car buying(Buying a Japanese car)
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Date: Wed, 27 Jan 1993 13:29:13 GMT
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In article <[e-mail]>, [e-mail] (Carl Heinzl) writes:
|>
|> >Everyone seems to be missing a few really basic points in this
|> >discussion of our trade imbalance.  First: population and
|> >productivity.  Japan has a comparatively small population and high
|> >productivity.  USA has a high population and lower productivity.  So
|>
|> First, Japan has approximatly 50% the population of the US.  I would
|> NOT consider that small!!!

Actually, I believe the population of Japan is about 80 million, while the
population of the U.S. is about 260 million (re: 30%).

|> Second, I think that you're pissing into the wind by stating "Japan
|> has high productivity."  In certain arena they do have higher
|> productivity that we do but the converse is also true.  They are
|> certainly *not* supermen doing the work of 5 people here in the US.

Correct, but the Japanese auto manufactures in particular seem to be more
productive (in fact, their plants here in Canada and the U.S. are very
productive as well).

|> >long as we can't produce all that we want to consume, someone
|> >(Japanese or otherwise) is going to have a big trade imbalance with
|> >us.
|>
|> >A second point is about population itself.  Even if we and the
|> >Japanese do lower all trade barriers (real and imagined) we'll still
|> >have a trade imbalance with them.  The Japanese market (for cars, or
|> >anything) just isn't as big as ours.  Couple this with the high
|> >housing costs in Japan, which severely limits the disposable income
|> >there, and you'll find the market prospects very poor indeed.
|>
|> Do you know that it costs LESS to buy many Japanese made products HERE
|> in the US and ship it back to Japan than it costs to BUY IN JAPAN!!!
|>
|> >The USA needs to get to work fixing our own problems, not pointing fingers
|> >at imaginary bad guys.
|>
|> We may have problems to take care of here but ALL of the finger
|> pointing isn't misplaced.
|>
|> I have a friend who just arrived back after spending two years in
|> Japan.  While he was there he bought a pair of shoes (loafers, no big
|> deal) - price $160 (US).  The stories about apples costing $5 are all
|> true (and he says they don't taste anywhere near as good as ours).
|>
|> So, if we have a level playing ground, perhaps we won't get the whole
|> Japanese car market but there is a HUGE Japanese electronic and food
|> market that's just waiting for Japan to drop it's protectionist
|> attitudes.
|>
|> -Carl-

Keep in mind that the Japanese pay about 5% tax, thus all the companies provide
medical care, education, etc..  They have to pay for it, so they do so with high
prices.  Which just goes to prove you can never avoid taxes.

Don Clayton
a.k.a. Admiral Maverick, DM of the Drow
My brain, my thoughts, my words.
"Nindyn vel'uss kyorl nind ratha thalra elghinn dal lil alust."
(Those who watch their backs meet death from the font.)