The Japan-American Trade War


For years after the end of the second world war, the Japanese suffered
from an inferiority complex. This was the result of the American aid to
Japan which helped to rebuild their country. Soon the Japanese started
producing goods, small stuff at first, like junky toys in the earlier years
- but then came better items, much better items. Now it is the Americans
that suffer from the inferiority complex, not familiar with being
economically vulnerable and not entirely in control of their destinies. Who
to blame - the Japanese of course. If Americans can not learn to compete
with the Japanese, then there is going to be some serious trouble because
the economic problem will not just "go" away.

When Japan lost World War II, six million Japanese had to return home
from the colonies Japan lost. These people had to be fed, clothed and
housed. The outlook for Japan's recovery did not look very hopeful. The
Americans had no intention of helping the Japanese, but the communist
victory in China changed this, because the Americans wanted to stop the
further advance of communism. Americans started to help Japan out by not
making them pay reparations for war damages and opened Japanese trade to
other countries. The Americans dissolved the powerful family businesses
which opened business to more competition and in the countryside, they took
land from the landlords and gave it to the tenant farmers. By the time
American occupation ended in 1952, Japan had returned to prewar levels of
production. With their recovery now ensured, Japan embarked on a period of
great economic growth which is growing at a faster rate every day.

The Japanese are now at the head of a powerful economy which is the
second largest in the world, exceeded only by the Americans. Many beleive
that the Japanese economy will overtake the U.S. economy by the year 2000.
Polls in the United States have indicated that the Americans rank the
Japanese economic threat higher than the Russian military threat.

Yoshio Sakurachi, the speaker for the Lower House of the Diet (the
Japanese Parliament), called American workers lazy and illiterate. These
remarks came just after George Bush and the leaders of American Auto
Corporations had visited Japan, a trip that left everyone with an
impression of American weakness and whining.

A few weeks ago, Minoru Arakawa, president of Nintendo of America made
a bid to purchase the Seattle Mariners. To a lot of Americans, there are
two items which are located near the centre of their folklore and psyche.
These are cars and baseball. Now that these items are under threat from the
Japanese, it is causing unusual resentment and distress to some Americans,
especially after watching the Japanese buy heavily into Hollywood and other
parts of their lives.

Americans are now trying to figure out ways to get the economy back on
line after about a 19 month recession from which it is still recovering.
Dr. William Lippy, for example, offered the 75 employees of his clinic $400
cash if they bought a new American car. He started inviting all other
companies to join in his "Jump-Start America" campaign. He claims to have
enlisted a total of 175 firms with 60,000 workers to offer similar
incentives. This is nothing new to the Japanese though, where this has been
going on for a long time. For example, Mitsubishi and other corporate
groups, called keiretsu have the power to order employees to wage personal
warfare on the commercial brands of a rival. A common story was of a group
of Japanese men that walk into a bar and shout "Biru" (Beer). The bartender
offers them Asahi Beer, a common brand but they shout, "Were Kirin men!".
The Kirin men are literally that - employees of any one of the 148
companies associated with the Mitsubishi group, whic ontrols Kirin.

Americans are running scared now, and you probably did not need this
essay to tell you that - and Japan is aware of this. So now opinion is
growing in Japan in favour of an almost revolutionary idea - to back off.
Corporations should raise prices, pay workers more for fewer hours and
distribute fatter dividends. This came after the President of Sony made a
speech saying that Americans will not take much more of the way the
Japanese are competing with them. They should in short then, become more
like their western rivals. Already change is afoot in Japan's most
competitive industries. Since January, the two biggest auto companies,
Toyota and Nissan, have said that they would