Japan Must Let Zombie Companies Die
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Japan Must Let Zombie Companies Die
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Re: Japan Must Let Zombie Companies Die
#2> If Japan wants to generate long-term growth...
Does Japan want this?
Re: Japan Must Let Zombie Companies Die
#3> If Japan wants to generate long-term growth... Does Japan want this?
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Re: Japan Must Let Zombie Companies Die
#4> If Japan wants to generate long-term growth... Does Japan want this?
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Re: Japan Must Let Zombie Companies Die
#5>you decide to leave your job and start a business with your college buddies
I know the point they were trying to make in the article, but the primary reason this doesn't happen in Japan is the cultural fear of failure rather than the system being broken. Once you're in, the nanny corporation will take care of you for the rest of your life. Once those corporations are in, the government will take care of them for the rest of their life. Risk mitigation is what's most highly valued; because of this fact, not all capitalistic logic can be applied, despite the system appearing fairly capitalist.
Re: Japan Must Let Zombie Companies Die
#6> If Japan wants to generate long-term growth... Does Japan want this?
Their population is declining, so no, I guess.
Re: Japan Must Let Zombie Companies Die
#7>you decide to leave your job and start a business with your college buddies I know the point they were trying to make in the article, but the primary reason this doesn't happen in Japan is the cultural fear of failure rather than the system being broken. Once you're in, the nanny corporation will take care of you for the rest of your life. Once those corporations are in, the government will take care of them for the…
The corporations can't take care of their employees forever, so does the government can't take care of the corporations forever.. Wouldn't they not want this to hit a dead end?
Re: Japan Must Let Zombie Companies Die
#8Well, wonder how much it costs Japan to do this, and might be fun to compare with what China has put into its stock market.
Re: Japan Must Let Zombie Companies Die
#9Abe and Koizumi to a lesser degree keep wanting to change business in Japan, but it just does not happen. Economists have been "telling" Japan to let Zombie companies die for over 25 years and little has changed. Brokers intermediaries too, they have not been made redundant through efficiencies.
On the one hand it's interesting to see a society buck the trend towards working out inefficiencies, on the other hand, they are not a closed market so they can't just keep on going like this and hope things get better.
Re: Japan Must Let Zombie Companies Die
#10The above article is best understood as a political piece, rather than a business story.
Every single sentence in this article can be picked apart, but doing a line-by-line critique would miss the larger problems with the article. The author assumes that more productivity is always good, even though Japan has been suffering a lack of economic demand for most of the last 26 years. Big gains in productivity would only make the lack of demand worse.
If the goal of Japanese policy makers is to boost demand, and that does seem like a wise goal, then keeping 50,000 workers employed at Sharp seems like a smart bet, compared to keeping 100 people employed at some nimble, fast-moving startup.
More so, Japanese electronics firms still hold great global market share, so there is reason to think that their productivity is more than adequate to compete in the global markets.
And this sentence can only be understood if your political beliefs align with the political beliefs of that author:
"If Japan’s bailouts remind you of the U.S.'s rescue of its auto companies, you’re not alone. There is a strong argument that the auto bailouts only delayed the day when General Motors and Chrysler lose out to nimbler competitors like Tesla Motors."
Right, but the USA bailout of the auto companies seems to have been a good bet. Hundreds of thousands of jobs were saved, and the companies bounced back and paid off their debts, and the USA was able to sell its stake in GM at a profit. So it was win-win-win all the way: the taxpayers won, the workers won, and the economy won.