The essential story on huge economic fallacies...
These 4 perfect paragraphs should inform every conversation. Undoubtedly, they'll inform many. Unfortunately, I'd bet barrels to dollars they won't inform the main public conversation this decade...
So…of course I agree, with the post, and you, but also…
One needs to paint a rather complex backdrop so that explaining economics to anyone (even the educated) can be done quickly.
For example, up until recently (several decades ago) Japan was a cash and hold country. One cannot use their own (in America) interpretation of this. For example:
- They used cash for everything, bought houses outright.
- At banks they have to be KNOWN to the banker to move money (think about the value of a written signature in such a country)
- 25-33% of their salary came once a year. (Americans would go ballistic over this).
- They undersold other countries, even at a personal loss as a country/company, in order to own a market.
- They created laws that make it prohibitive to recycle, or reuse, creating a symbiotic relationship with other countries for hand-me-downs (NZ for example gets almost all its cars as second hand Japanese cars), Thailand gets the Pachinko machines. Etc.
Suddenly, you have these young men and women with LOTS of cash, and an appetite to BUY BUY BUY. Ok, so we know what happened to them 10 years ago.
Ok, but there are things to learn here for us, and unlike the general 4 paragraphs, we need to be more specific here. "US" is not the earth, but "U.S."
If we are going to give "general advice to this country" then I would probably outline it more like this:
- War :: Only go to war with countries we are willing/want to take something from. (Americans are too nice, so it should stop going to war).
- Education :: Every dollar spent reaps invaluable riches. For ever.
- Retail :: Our customer is the world, not America, get it through your head.
- Teamwork :: Keep your kids at home only long enough for them to buy their own home.
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About Japan...fascinating. New to me!
YES!:
- War :: Only go to war with countries we are willing/want to take something from. (Americans are too nice, so it should stop going to war).
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