From: merritt@macro.bu.edu (Sean Merritt)
Newsgroups: alt.politics.libertarian
Subject: Re: Japan vs USA
Date: 21 Dec 92 15:06:22 GMT
	<MERRITT.92Dec17115025@macro.bu.edu>
	<1992Dec18.044255.22156@samba.oit.unc.edu>
Organization: Boston University Physics Department
In-reply-to: bolden@beta.math.unc.edu's message of 18 Dec 92 04:42:55 GMT

In article <1992Dec18.044255.22156@samba.oit.unc.edu> bolden@beta.math.unc.edu (Jeffrey Bolden) writes:



%   Sean -
%	   Excellent factoid on the Roman empire!  I saved that one to disk
%   for future reference.  However, it seems to if anything it proves the
%   value of:
%   1)  A currency backed heavily by its commodity.
%   2)  Stable monatary policy. 
%	   On #1 we agree, a discussion of #2 will take us way off track.  
%
%   Now to respond to the rest of the post:
%
%	   With regard to having to work for an alternative currency if the
%   dollar ceases to be the "currency of choice", I agree; it seems convient
%   for this to be dollars.  Again however, I'm not an economist.  Just
%   because something seems helpful does not necesarily mean it is.  I do
%   however agree with you, that the yen might become the currency of choice. 
%   Once I've heard stronger arguments as to why this is bad rather than
%   inconvient, I'll grant your point.
%	   Further, I think your Russia analogy is poor one.  Russia has been
%   hyperinflating their currency, to balance the budget. Note that many small
%   currencies even if they inflate frequently (like the peso) are still
%   accepted for international trade.  Russia is just going through a currency
%   collapse, which is a result of bad monatary policy; not a result of a bad
%   economy.
%
%	   It seeems that your conceeding my point that under your view of
%   Japanesse trade their going to stuck with a lot "worthless paper".  I saw
%   this as a refutation to your original argument.  You however seem to
%   believe this is their goal.  So I put the question to you:  assuming your
%   correct why would the Japanesse work their buts off solely to damage the
%   American economy?  what would cause this degree of anger towards us?


I contend there is no anger. They will not let us go all they way under.
They still need us. But they will try to become the dominant economy
in the world at our expense. They will buy the factories and employ
Americans. If you want to know what happens to middle management and
engineering staff under Japanese control see the recent FRONTLINE
(don't have title of the show.), about what happened at Quasar.
In a nut shell when staff cuts were deemed necessary the American
Engineers and Middle Managers were axed. No Japanese were. The 
Americans that remained had their salaries frozen, the Japanese
got pay increases. If you think that it will be ok to work
as a second class citizen for a Japanese international corparation,
you sadly mistaken gaijin!

%	   As for the income statistics, you requested sources.  I've heard
%   this time and time again; off the top of my memory:
%   1)  The National Review
%   2)  CNN
%   3)  The new republic.
%   4)  C-Span, today on the "post economic conference".  that's a specific
%   source so if your want a transcript ....

Not one source there I trust. Sorry. Inflation adjusted figures show
that your real purchasing power is going down. Perhaps the chap with
"If you make $50,000 today...." your as well of as a coal miner .sig
has some figures.

I won't just ad hoc refute your claims I will attempt to dig up
some numbers after my Japanese language final tonight 8^).

%	   As for your argument of standard of living through the roof.  You
%   refuted by mentioning home ownership.  Except in 1991 ownership has gone
%   up as a percentage every year since the WWII.  Its also a very poor
%   measure of standard of living.  the reason being that the cost of modern
%   house is primarily the cost of the real estate.  The more advaced our
%   society becomes the more real estate will cost....  This is the opposite
%   of most other definitions of standard of living, used throughout the world.

I base my claims on Lester Thurow's latest book. It isn't here now...
I'll get it. I know that I make a decent wage and I'm still saving 
for a down payment. I do think land/real estate is cheap right(look at that 
Roman empire factoid again.).


-sjm
--
Sean J. Merritt		         | "Every revolt is a cry of innocence    
Dept of Physics Boston University|  and an appeal to the essence of being."
merritt@macro.bu.edu             | Albert Camus, The Rebel