Categorized | Technology, Trade

Japan has an economic plan… in their national interest

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One of the reasons Japan grew is because they had an economic plan.  They recognize that national interests matter, and they pursue the national interest.  We don’t.

Robotics?  The U.S. developed robotics initially but Japan commercialized it.  We didn’t.

Electronics?  We did a lot of electronics R&D but Japan produces electronics.  We don’t… or at least not much.

The U.S. seems to think we don’t need a plan.  Or if we do need a plan… it is merely interest rate targets or monetary supply targets.  That’s part of the reason we fail.  We’re losing an economic targeting and planning battle that Washington does not even know exists.

Here is the latest from Japan.

When a magnitude 9 earthquake knocked out a chip-making factory at Renesas Electronics, Toyota Motor and other manufacturers dispatched hundreds of workers to help get the plant in northeastern Japan running again.

On Monday, some of Japan’s largest manufacturers pitched in again, contributing to a $1.8 billion bailout of the struggling company.

In a statement, Renesas said eight Japanese manufacturers, including Canon, Nikon, Nissan, Panasonic and Toyota, would contribute about $145 million to the deal. A government fund, the Innovation Network Corporation of Japan, will provide the rest of the aid.

Building, maintaining and growing supply chains in major industries produce multipliers of jobs, value added economic benefit, innovation (current and future), etc.  Japanese companies even participate in furthering the national interest.  We in the U.S. simply don’t think that way.  That is part of the reason we are currently an unsuccessful trading and producing nation.

2 Responses to “Japan has an economic plan… in their national interest”

  1. Burl Finkelstein says:

    As I think a meaningful economic plan it has to do with who is in government. I have spokent o many of our legislators and the vast majority has no idea of how business and manufacturing benifit the economy and the country. It has been the opposite with Goldman Scaks types telling the legislators that we are a service economy and we can build a economy on transactions.
    The Jappanese and Germans have business people and manufacturing people in the government.
    They get it. They have proven a production based economic plan works, even in developed economies.

  2. peter says:

    Your first paragraph nails it. Part of the Japanese work ethic is that everyone works together to benefit society as a whole. While republicans might mistakenly call this “socialism”, it is a far better approach than our dog eat dog business environment. They are also much more methodical than we are, having learned quality control from W Edwards Deming(our idea, by the way) and have a much better focus on where they are going. Someone at Matsushita Electric(Panasonic) once told me they had a 250 year business plan.

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